UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended June 30, ~~2015~~2016

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ~~_____________________~~___________ to ~~___________________________~~___________

Commission file number 000-54510

China Modern Agricultural Information, Inc.

(Exact name of registrant as specified in its charter)

Nevada		27-2776002
State or other jurisdiction of incorporation or organization		(I.R.S. Employer Identification No.)

No.A09, Wuzhou Sun Town Limin Avenue, Limin Development District Harbin, Heilongjiang, China		150000
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (86) 0451-84800733

Securities registered pursuant to Section 12(b) of the Exchange Act: None.

Securities registered pursuant to Section 12(g) of the Exchange Act:

Common Stock, par value $0.001 per share

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

(Do not check if a smaller reporting company)

☐

Smaller reporting company

☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of the Company’s common stock held by non-affiliates computed by reference to the closing bid price of the Company’s common stock, as of the last business day of the registrant’s most recently completed second fiscal quarter: $199,~~691~~867,~~422~~225.2484.

Indicate the number of shares outstanding of of each of the registrant's classes of common stock, as of the latest practicable date: 53,100,000 shares of common stock, par value $0.001 per share, issued and outstanding as of ~~October~~September 1229, ~~2015~~2016.

DOCUMENTS INCORPORATED BY REFERENCE

None.

TABLE OF CONTENTS

		Page
	PART I
Item 1.	Business	41
Item 1A.	Risk Factors	1513
Item 1B.	Unresolved Staff Comments	1513
Item 2.	Properties	1513
Item 3.	Legal Proceedings	1614
Item 4.	Mine Safety Disclosure	1614
	PART II
Item 5.	Market For Registrant’s Common Equity, Related Stockholder Matters And Issuer Purchases Of Equity Securities	1715
Item 6.	Selected Financial Data	1815
Item 7.	Management’s Discussion And Analysis Of Financial Condition And Results Of Operations	1816
Item 7A.	Quantitative And Qualitative Disclosures About Market Risk	2425
Item 8.	Financial Statements And Supplementary Data	2426
Item 9.	Changes in and Disagreements With Accountants On Accounting And Financial Disclosure
Item 9A.	Controls And Procedures	2527
Item 9B.	Other Information	2527
	PART III
Item 10.	Directors, Executive Officers And Corporate Governance	2628
Item 11.	Executive Compensation	2931
Item 12.	Security Ownership Of Certain Beneficial Owners And Management And Related Stockholder Matters	3133
Item 13.	Certain Relationships And Related Transactions, And Director Independence	3234
Item 14.	Principal Accountant Fees And Services	3235
	PART IV
Item 15.	Exhibits, Financial Statement Schedules	3336
Signatures		3437

2PART I

~~Forward-Looking~~Item 1. ~~Statements~~Business.

Certain statements in this Annual Report on Form 10-K constitute “forward-looking statements” made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates, forecasts and assumptions and are subject to risks and uncertainties. Words such as “anticipate,” “assume,” “believe,” “estimate,” “expect,” “goal,” “intend,” “plan,” “project,” “seek,” “target,” and variations of such words and similar expressions are intended to identify such forward-looking statements. All forward-looking statements speak only as of the date on which they are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions relating to certain factors that could cause actual results to differ materially from those anticipated in such statements.

We cannot predict all of the risks and uncertainties. Accordingly, such information should not be regarded as representations that the results or conditions described in such statements or that our objectives and plans will be achieved and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. These forward-looking statements are found at various places throughout this Annual Report on Form 10-K and include information concerning possible or assumed future results of our operations, including statements about potential acquisition or merger targets; business strategies; future cash flows; financing plans; plans and objectives of management; any other statements regarding future acquisitions, future cash needs, future operations, business plans and future financial results, and any other statements that are not historical facts.

These forward-looking statements represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors. Many of those factors are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of the Annual Report on Form 10-K. All subsequent written and oral forward-looking statements concerning other matters addressed in this Annual Report on Form 10-K and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this Annual Report on Form 10-K.

Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.

Use of Certain Defined Terms

In this Annual Report on Form 10-K, references to “we,” “our,” “us,” “the Company,” refer to China Modern Agricultural Information, Inc. and its subsidiaries and variable interest entities on a consolidated basis.

In addition, unless the context otherwise requires and for the purposes of this report only

●	“Exchange Act” refers to the Securities Exchange Act of 1934, as amended;
●	“Jiasheng Consulting” refers to Jiasheng Consulting Managerial Co., Ltd., a PRC company;
●	“Operating Company or Operating Companies” refers to Value Development Holding, Value Development Group, Jiasheng Consulting, Zhongxian Information, Xinhua Cattle, and Yulong Cattle.
●	“PRC,” “China,” and “Chinese,” refer to the People’s Republic of China;
●	“Renminbi” and “RMB” refer to the legal currency of China;
●	“SEC” refers to the United States Securities and Exchange Commission;
●	“Securities Act” refers to the Securities Act of 1933, as amended;
●	“Yulong Cattle” refers to Shangzhi Yulong Cattle Co., Ltd., a PRC company;
●	“U.S. dollars,” “dollars” and “$” refer to the legal currency of the United States;
●	“Value Development Holding” refers to Value Development Holding Limited., a British Virgin Islands company;
●	“Value Development Group” refers to Value Development Group Limited, a Hong Kong company;
●	“Xinhua Cattle” refers to Heilongjiang Xinhua Cattle Industry Co., Ltd., a PRC company;
●	“Zhongxian Information” refers to Heilongjiang Zhongxian Information Co., Ltd., a PRC company;
●	“Hope Diary” refers to Hope Diary Holdings Ltd., a British Virgin Islands company;
●	“China Dairy” refers to China Dairy Corporation Ltd., a Hong Kong company;

Overview

We are a leading producer and distributor of raw fresh milk in China. We have two operating entities with an aggregate fresh milk production capacity of approximately 386 tons per day. We also have 63 exclusive individual partners on June 30, 2016 with an aggregate fresh milk production capacity of approximately 324 tons per day. We have four major customers, one of which is the leading dairy company in China. During the quarter ended December 31, 2015, we terminated the contracts with certain customers and entered into contracts with three new customers.

Corporate History

We were incorporated on December 22, 2008 under the laws of the State of Nevada. We were formerly known as Trade Link. On April 4, 2011, the Board of Directors of Trade Link filed an amendment to the Certificate of Incorporation with the State of Nevada and changed our name from Trade Link to China Modern Agricultural Information, Inc.

On January 28, 2011, we entered into a share exchange agreement by and among (i) Value Development Holding Limited, a British Virgin Islands company (“Value Development”), (ii) Value Development’s shareholders, (iii) us, and (iv) our former principal stockholders. Pursuant to the terms of the agreement, Value Development’s shareholders transferred to us all of the shares of Value Development in exchange for the issuance of 35,998,000 shares of our common stock. The shares issued to Value Development’s shareholders in the Securities Exchange constituted approximately 87.80% of our issued and outstanding shares of common stock as of and immediately after the consummation of the Securities Exchange. As a result of the Securities Exchange, Value Development became our wholly owned subsidiary and Value Development’s former principal shareholders became our principal shareholders.

On January 28, 2011, Value Development completed the acquisition of Jiasheng Consulting Managerial Co., Ltd., a PRC company (“Jiasheng Consulting”). Jiasheng Consulting entered into a series of contractual agreements with Heilongjiang Zhongxian Information Co., Ltd., a PRC company (“Zhongxian Information”), Mr. Zhengxin Liu, our Chief Human Resource Officer and holder of 62% the of equity interest in Zhongxian Information, and Mr. Youliang Wang, our Chief Executive Officer and holder of 38% of the equity interest of Zhongxian Information. Pursuant to the contractual arrangements, Jiasheng Consulting controls all managerial power of Zhongxian Information. The contractual arrangements include a shareholder voting rights proxy agreement, exclusive consulting and services agreement, exclusive call option agreement and equity pledge agreement, pursuant to which, Jiasheng Consulting shall provide exclusive and complete business support and technical and consulting service to Zhongxian Information in exchange for an annual fee in the amount of Zhongxian Information’s yearly net profits after tax, and Zhongxian Information’s stockholders pledged their rights, title and equity interest in Zhongxian Information as security for the collection of such consulting and service fees provided in the equity pledge agreement.

Zhongxian Information was incorporated in China in January 2005 with registered capital of RMB 10,000,000 or $1,206,800 US Dollars. In February 2006, it acquired 99% of the registered capital of Heilongjiang Xinhua Cattle Industry Co., Ltd., a PRC company (“Xinhua Cattle”), which was incorporated in China in December 2005 with registered capital of RMB 3,000,000 or $371,580 US Dollars. Xinhua Cattle is located in Qiqihar, Heilongjiang Province, in northeast China and is a livestock company that engages in cow breeding and fresh milk production and distribution.

On November 23, 2011, Zhongxian Information acquired 100% of the equity interest of Shangzhi Yulong Cattle Co., Ltd., a PRC company (“Yulong Cattle”), in exchange for (i) issuance of 9,000,000 shares of our common stock, and (ii) a cash payment of $4,396,000, to Yulong Cattle’s former shareholders. Yulong Cattle was incorporated on December 4, 2007 under the laws of the PRC. Yulong Cattle, located in Harbin, Heilongjiang, in northeast China, is a livestock company that engages in cow breeding and fresh milk distribution, and primarily generates its revenue from the sale of fresh milk.

On July 16, 2015, we transferred 100% of the issued and outstanding shares of Value Development to China Dairy Corporation Ltd., a Hong Kong company (“China Dairy”), which is 60% owned indirectly by the Company through the Company’s wholly- owned subsidiary, Hope Diary Holdings Ltd., a British Virgin Islands company (“Hope Diary”). These transactions involve no consideration received or paid as Value Development and China Dairy are under common control with us and this transaction is a restriction to our interests in Value Development.

China Dairy was newly incorporated in January 2015 and did not have any significant assets or liabilities, or business operations, which is 100% owned by Company’s PRC corporate advisor. Further, the sole shareholder transferred the 10,000 shares of China Dairy to Value Development 60% and various shareholder and consultants of the Company 40% at HK$1.00 per share.

The 40% of the 10,000 shares of China Dairy were transferred from the sole shareholder of China Dairy to the following entities at HK$1.00 per share, which has direct or indirect relationship with the shareholder and consultants of the Company: 3% to Beijing Ruihua Future, 4% to Donghe Group, 3% to Integral Capital, 20% to Dingxi Shanghai Fund and 10% to Zhiyuan International. Immediately after the transfer, 65,000 bonus shares were issued at no consideration for every existing share.

Value Development is the sole shareholder of Value Development Group Limited, which is the sole shareholder of Harbin Jiasheng Consulting Managerial Co. Ltd. (“Jiasheng Consulting”), which is our subsidiary in China, with respect to which the operating company, Zhongxian Information, is a variable interest entity. The effect of this transaction was to reduce the interest of ours in its operating company by 40%. We use the China Dairy’s offering price for the Proposed Offering to approximate the fair value of the 40% stock granted to the shareholder and consultants.

On September 16, 2015 our 60%-owned subsidiary, Jiasheng Consulting, exercised its option to purchase all of the registered equity of our operating subsidiary, Zhongxian Information from its stockholders Zhengxin Liu and Youliang Wang, who are also the members of our Board of Directors, for RMB10,000 (approximately $1,634). Prior to the acquisition, Jiasheng Consulting controlled Zhongxian Information through a series of contractual agreements, which made Zhongxian Information a variable interest entity, the effect of which was to cause the balance sheet and operating results of Zhongxian Information to be consolidated with those of Jiasheng Consulting in our financial statements. As a result of the acquisition by Jiasheng Consulting of the registered ownership of Zhongxian Information, the balance sheet and operating results of Zhongxian Information hereafter continues to be consolidated with those of Jiasheng Consulting as its 100% owned subsidiary.

On April 8, 2016, our 60% owned subsidiary, China Dairy Corporation Limited issued 84,906,541 CDI shares at AUD $0.2 per share on ASX and raised total fund of AUD $16,981,308 (USD $13,021,267). After the IPO, our ownership was diluted to 53.07%.

Our current structure is set forth below:

$O:\1 Pre-Sub\2016\September\Morning\26\China Modern$

~~PART~~Our Business IModel

~~Item~~We generate 1.revenues ~~Business~~from three sources: sale of fresh milk, processing and sales of organic fertilizer, and assisting local farmers with their fresh milk sale efforts.

~~Overview~~Fresh Milk

We exclusively ~~are~~use aHolstein ~~leading~~cows ~~producer~~for ~~and~~our ~~distributor of natural fresh~~ milk ~~in China~~production. WeHolstein ~~have~~cows ~~two~~are ~~operating~~well-regarded ~~entities~~for ~~with~~their anabundant ~~aggregate natural fresh~~ milk production ~~capacity of approximately~~and ~~234~~high-quality ~~tons (approximately 7,431gallons) per day~~milk. WeOur ~~also~~cows currently have 76an ~~exclusive~~average ~~individual~~milking ~~partners~~period ~~with~~of an305 ~~aggregate~~days ~~natural~~and ~~fresh~~produce milk ~~production~~ ~~capacity~~that ofcontains approximately 3.5% ~~405 tons per day~~fat. WeEach ~~have~~adult ~~five~~cow ~~major~~produces ~~customers~~approximate 8,700 ~~one~~kilograms ~~of which is the leading dairy company in China~~annually.

~~Corporate~~Our farmland ~~History~~is located in the Heilongjiang province which has a humid continental climate. This climate is ideal for the growth of grass, which in turn is essential in the grazing and feeding of our cattle that aids in our breeding of cows and calves, fresh milk production and organic fertilizer production. We maintain strict quality control and testing procedures to ensure our milk products are of high quality. The milk production and quality controls ensure that the milk produced is high in nutrients and active biological substances.

~~We were incorporated on December 22, 2008~~Cow under the laws of the State of Nevada. We were formerly known as Trade Link. On April 4, 2011, the Board of Directors of Trade Link filed an amendment to the Certificate of Incorporation with the State of Nevada and changed our name from Trade Link to China Modern Agricultural Information, Inc.Feeders

OnXinhua Cattle ~~January~~outsources ~~28,~~over ~~2011,~~90% weof ~~entered into~~ the ~~Exchange Agreement~~cow byfeeding ~~and~~to ~~among~~local ~~(i)~~farmers ~~Value~~pursuant ~~Development~~to ~~Holding,~~ a ~~British~~series ~~Virgin~~of ~~Islands~~entrusting ~~company,~~feeding ~~(ii)~~agreements ~~Value~~with ~~Development~~the ~~Holding’s~~local ~~shareholders, (iii) us, and (iv) our former principal stockholders~~farmers. Pursuant to ~~the~~these ~~terms of the Exchange Agreement~~agreements, ~~Value~~we ~~Development Holding’s~~pay ~~shareholders transferred to us all of the shares of Value Development Holding in exchange~~ for the ~~issuance~~fostering ~~of 35,998,000~~fees ~~shares~~and offeed ~~our common stock (the “Securities Exchange”)~~costs. ~~The~~In ~~shares~~return, ~~issued to Value Development Holding’s shareholders in~~ the ~~Securities~~local ~~Exchange~~farmers ~~constituted~~provide ~~approximately~~us ~~87.80% of our issued and outstanding shares of common stock~~with ~~as of and immediately after~~ the ~~consummation~~fresh ofmilk ~~the~~produced ~~Securities~~by ~~Exchange. As a result of~~ the ~~Securities Exchange, Value Development became our wholly owned subsidiary and Value Development’s former principal stockholder became our principal stockholder~~cows.

~~Value~~Pursuant to ~~Development~~these ~~Holdings~~entrust ~~was~~feeding ~~incorporated under~~agreements, ~~the~~we ~~laws~~entrust ofour ~~British~~cattle ~~Virgin~~to ~~Islands~~local onfarmers ~~June~~to ~~24,~~assist ~~2010~~in toa ~~serve~~more asefficient anmeans ~~investment~~to ~~holding~~produce ~~company.~~fresh milk, ~~Value~~as ~~Development~~well ~~Holdings owns~~as ~~100%~~manure, ofused ~~the~~in ~~equity~~our ~~interest~~production of ~~Value~~organic ~~Development~~fertilizer. ~~Group~~In that regard, we pay a ~~company~~monthly ~~incorporated~~fee ~~under~~to local farmers that correlate to the ~~laws~~number of ~~Hong~~calves, ~~Kong~~cattle, onand ~~September~~cows 17that are placed in their care. Pursuant to the agreements, local farmers are ~~2010.~~responsible ~~Value~~for ~~Development~~the ~~Group~~feeding ~~owns~~and ~~100%~~raising of the ~~equity~~cattle ~~interest~~as ofwell ~~Jiasheng~~as ~~Consulting~~the fresh milk production. Additionally, athese ~~company~~local ~~incorporated~~farmers ensure ~~under~~that ~~the~~each ~~laws~~cow produces a minimum of ~~the~~ ~~PRC~~20 onkilograms ~~September~~of ~~15,~~milk ~~2010~~daily.

OnBetween ~~January~~July ~~28,~~and ~~2011~~August 2015, ~~Value~~monthly ~~Development Group~~feeding ~~completed~~fee to the ~~acquisition~~local offarmers ~~Jiasheng~~is ~~Consulting~~$7.77 ~~Jiasheng~~per ~~Consulting~~baby ~~entered~~cow, ~~into~~$10.88 aper ~~series~~pre-adult ~~of agreements (the “Contractual Arrangements”) with Zhongxian Information~~cow, ~~its~~$15.54 ~~shareholders,~~per inyoung ~~which~~cow ~~Jiasheng Consulting effectively assumed management of the business activities of Zhongxian Information~~ and ~~its~~$31.08 ~~99%~~per ~~owned~~adult ~~subsidiary Heilongjiang Xinhua Cattle~~cow, ~~and acquired the~~respectively; ~~right~~food tocosts ~~appoint~~every ~~all~~month ~~executives~~to ~~and senior management and~~ the ~~members~~local offarmers ~~the~~is ~~Board~~$51 ofper ~~Directors~~baby ofcow, ~~Zhongxian~~$65 ~~Information.~~per ~~Zhongxian Information~~pre-adult ~~was~~cow, ~~founded~~$71 onper ~~January~~young ~~21 2005~~cow, and is$106 ~~headquartered~~per inadult ~~the Limin Development Zone~~cow, ~~Harbin, Heilongjiang Province,~~ ~~with~~respectively. ~~registered~~Since ~~capital~~August ~~of 10 million RMB or $1~~2015,~~206,800.~~ ~~The~~the ~~Contractual~~monthly ~~Arrangements~~feeding ~~are~~fee ~~comprised~~remains ofthe asame ~~series~~while ofbetween ~~agreements, including~~September ~~an Exclusive Business Cooperation Agreement, Exclusive Option Agreement,~~ and anNovember ~~Equity~~the ~~Interest~~food ~~Pledge~~costs ~~Agreement, through~~increased ~~which Jiasheng Consulting has the right~~ to ~~provide~~$61 ~~exclusive~~per ~~complete~~baby ~~business~~cow, ~~support~~$76 ~~and~~per ~~technical~~pre-adult ~~and consulting service to Zhongxian Information. Additionally~~cow, ~~Zhongxian~~$85 ~~Information’s~~per ~~shareholders~~young ~~have pledged their rights~~cow, ~~titles~~ and ~~equity~~$127 ~~interest in~~per ~~Zhongxian~~adult ~~Information~~cow, asrespectively. ~~security~~From ~~for~~November ~~Jiasheng~~2015, ~~Consulting~~the ~~to collect consulting and services fees provided to Zhongxian Information~~food ~~through~~costs anincreased ~~Equity Pledge Agreement. In order to~~ further ~~reinforce Jiasheng Consulting’s rights~~ to ~~control~~$70 ~~and~~per ~~operate~~baby ~~Zhongxian Information~~cow, ~~the~~$85 ~~shareholders~~per ofpre-adult ~~Zhongxian~~cow, ~~Information~~$101 ~~have~~per ~~granted~~young ~~Jiasheng~~cow, ~~Consulting the exclusive right~~ and ~~option~~$233 toper ~~acquire all~~adult ofcow, ~~their equity interests in Zhongxian Information through an Exclusive Option Agreement~~respectively.

~~Zhongxian~~Local farmers ~~Information~~are ~~was~~responsible ~~incorporated~~for ~~in China~~milk inproduction ~~January~~and ~~2005~~are ~~with~~required ~~registered~~to ~~capital~~timely deliver the milk production daily. All of 10the ~~million~~raw ~~RMB~~milk produced orby ~~$1,206,800~~the UScattle ~~Dollars.~~is Inowned ~~February~~by ~~2006~~us. Additionally, itthe ~~acquired~~local ~~99%~~farmers ofare contractually obligated to conduct periodic breeding for the ~~registered~~young ~~capital~~cattle ofand ~~Xinhua Cattle~~cows, ~~which~~at ~~was~~our ~~incorporated~~expense. inThe ~~China~~breeding inis ~~December~~overseen ~~2005~~by ~~with~~veterinarians ~~registered~~of ~~capital~~our ofchoosing. ~~three~~All ~~million~~calves produced ~~RMB~~by orour ~~$371~~entrusted cows are our property,~~580~~ USand ~~Dollars~~all calve births are overseen by veterinarians of our choosing. ~~Xinhua~~All ~~Cattle~~cow waste produced by our entrusted cattle is ~~located~~owned inby ~~Qiqihar,~~us. ~~Heilongjiang~~The ~~Province,~~local infarmers ~~northeast~~are ~~China~~obligated ~~and~~to iscollect athe ~~livestock company~~waste ~~that~~and ~~engages~~provide init ~~cow~~to ~~breading~~us for further processing, and ~~fresh~~eventual ~~milk~~sale ~~production~~as organic fertilizer.

~~On November 23, 2011, Zhongxian Information~~Fresh ~~acquired~~Milk 100% of the equity interest of Yulong Cattle in exchange for (i) issuance of 9,000,000 shares of our common stock, and (ii) a cash payment of $4,396,000, to Yulong Cattle’s former shareholders. Yulong Cattle was incorporated on December 4, 2007 under the laws of the PRC. Yulong Cattle, located in Harbin, Heilongjiang, in northeast China, is a livestock company that engages in cow breeding and fresh milk production, and primarily generates its revenue from the sale of fresh milk.Customers

4Mengniu Dairy Co. Ltd.

~~Recent~~Mengniu ~~Company~~Dairy ~~Restructure~~Co. Ltd. (“Mengniu”) has been a purchaser of our raw milk products since 2006. Our current and previous contractual arrangement provides for the purchase of our milk at the base price of RMB 3.45 or $0.55/kilogram. However, the base price is based on the quality of our raw milk, namely, fat percentage of 3.1%, protein percentage of 2.95%, and the Level One microorganism quality (less than 0.5 million / ml). Mengniu has renewed the contractual commitment to continue to purchase raw milk products from us.

Early in July 2015, Hope Diary acquired 60% of China Dairy and became a wholly-owned subsidiary of the Company after Mr. Youliang Wang, Company’s Chief Executive Officer, transferred 100% of his interest in Hope Diary to the Company for $50,000 (the “Hope Diary Transfer”). On July 16, 2015, the Company transferred 100% of the issued and outstanding shares of Value Development to China Dairy, which is 60% owned indirectly by the Company through the Company’s wholly owned subsidiary, Hope Diary as a result of the Hope Diary Transfer (the “Restructure”).4

~~The~~Mengniu accounted ~~Restructure~~for ~~involves~~7.9% ~~nominal~~of ~~consideration received~~all ormilk ~~paid~~sales asfor ~~Value~~the ~~Development~~fiscal ~~and~~year ~~China~~ended ~~Dairy~~June ~~are~~30, ~~under~~2016 ~~common~~and ~~control~~22.8% byof ~~the~~all ~~Company~~milk ~~and~~sales ~~this~~for ~~transaction affects~~ the fiscal ~~Company’s~~year ~~interests~~ended inJune ~~Value~~30, ~~Development~~2015.

~~As a result of the Restructure, the Company~~Qiqihaer ~~indirectly~~Heshan ~~owns 60% of China~~ Dairy ~~through its wholly-owned subsidiary~~Co., ~~Hope Diary, which holds 60% of the issued and outstanding shares of China Dairy, which in turn holds 100% of the issued and outstanding shares of Value Development~~Ltd.

~~The~~Qiqihaer ~~effect~~Heshan ofDairy ~~this~~Co., ~~transaction~~Ltd. (“Heshan Dairy”) was a purchaser of our fresh milk products since 2011. Our previous contractual arrangement provides for the ~~decrease~~purchase inof ~~interest~~our ofmilk at the ~~Company~~base inprice ~~its~~of ~~operating~~RMB ~~company~~3.50 byor ~~40%~~$0.56/kilogram. ~~This~~However, ~~will~~the ~~result~~base inprice is based on the ~~Company~~quality ~~recognizing~~of aour ~~transaction~~fresh ~~loss~~milk, namely, fat percentage of ~~approximately~~ ~~$50~~3.1%,~~300~~ protein percentage of 2.95%,~~000~~ ~~during~~and the ~~three~~Level ~~months~~One ~~ended~~microorganism ~~September~~quality ~~30,~~(less than 0.5 million / ml). In October 2015, we terminated our contractual relationship with Heshan Dairy.

~~The purpose of the transfer of Value Development~~Heilongjiang toLongxing ~~China~~ Dairy ~~is to facilitate a public offering of the capital stock of China Dairy in Australia~~Co., ~~The completion of an offering in Australia is anticipated to further dilute the Company’s ownership of China Dairy~~Ltd.

Heilongjiang Longxing Dairy Co., Ltd. (“Longxing Dairy”) was a purchaser of our fresh milk products from 2011 to October 2015. Our ~~corporate~~previous ~~structure~~contractual ~~pre-restructure~~arrangement provided for the purchase of our milk at the base price of RMB 3.50 or $0.56/kilogram. However, the base price is ~~set~~based ~~forth~~on ~~below:~~the quality of our fresh milk, namely, fat percentage of 3.1%, protein percentage of 2.95%, and the Level One microorganism quality (less than 0.5 million / ml). On October 21, 2015, we terminated our contractual relationship with Longxing Dairy.

5Heilongjiang Nongken Delong Dairy Co., Ltd.

Heilongjiang Nongken Delong Dairy Co., Ltd. (“Nongken Delong Dairy”) was a purchaser of our fresh milk products from 2011 to October 2015. Our ~~corporate~~previous contractual ~~structure~~arrangement ~~post-restructure~~provides for the purchase of our milk at the base price of RMB 3.50 or $0.56/kilogram. However, the base price is ~~set~~based ~~forth~~on ~~below:~~the quality of our fresh milk, namely, fat percentage of 3.1%, protein percentage of 2.95%, and the Level One microorganism quality (less than 0.5 million / ml). On October 15, 2015, we terminated our contractual relationship with Nongken Delong Dairy.

~~Our~~SuihuaDongxing Dairy ~~Business~~Co., ~~Model~~Ltd.

WeSuihuaDongxing ~~generate~~Dairy ~~revenues~~Co., Ltd. (“Dongxing Dairy”) was a purchaser of our fresh milk products from ~~three~~2011 ~~sources:~~to ~~sale~~October 2015. Our previous contractual arrangement provides for the purchase of our milk at the base price of RMB 3.50 or $0.56/kilogram. However, the base price is based on the quality of our fresh milk, ~~processing~~namely, ~~and~~fat ~~sales~~percentage of ~~organic~~3.1%, ~~fertilizer~~protein percentage of 2.95%, and ~~assisting~~the ~~local~~Level ~~farmers~~One ~~with~~microorganism ~~their~~quality ~~fresh~~(less ~~milk~~than 0.5 ~~sale~~million ~~efforts~~/ ml). On October 22, 2015, we terminated our contractual relationship with Dongxing Dairy.

~~Fresh Milk~~5

WeWandashan ~~exclusively~~Harbin ~~use~~Dairy ~~Holstein cows for our milk production~~Co. ~~Holstein cows are well-regarded for their abundant milk production and high quality milk. Our cows currently have an average milking period of 305 days~~, ~~and produce milk that contains approximately 3~~Ltd.~~5% fat. Each adult cow produces approximate 8,700 kilogram annually.~~

~~Our~~Wandashan ~~farmland~~Harbin isDairy ~~located~~Co., inLtd. ~~the Heilongjiang~~(“Wandashan ~~province~~Dairy”) ~~which~~ has been a ~~humid~~purchaser ~~continental~~of ~~climate.~~our ~~This~~fresh ~~climate~~milk isproducts ~~ideal~~since ~~for~~October ~~the growth of grass~~26, ~~which~~2015. inOur ~~turn~~current iscontractual ~~essential~~arrangement inprovides for the ~~grazing~~ ~~and~~purchase ~~feeding~~ of our ~~cattle~~milk ~~that~~at ~~aids~~the inbase ~~our~~price ~~breeding~~ of ~~cows~~RMB ~~and~~3.80 ~~calves,~~or ~~fresh~~$0.57/kilogram. ~~milk~~However, ~~production~~the ~~and~~base ~~organic~~price ~~fertilizer~~is ~~production. We~~based ~~maintain~~on ~~strict~~the quality ~~control~~of our ~~and~~fresh ~~testing~~milk, ~~procedures~~namely, tofat ~~ensure~~percentage ~~our~~of ~~milk~~3.1%, ~~products~~protein ~~are~~percentage of ~~high quality~~2.95%, ~~The~~and ~~milk~~the ~~production and~~Level One microorganism quality ~~controls~~(less ~~ensure~~than 0.5 ~~that~~million ~~the~~/ ~~milk~~ml). ~~produced~~Our iscurrent ~~high~~contractual inarrangement ~~nutrients~~with ~~and~~Wandashan ~~active~~Dairy ~~biological~~expires ~~substances~~on October 25, 2017.

6Wanjiabao Dairy Co., Ltd.

~~Cow~~Wandashan ~~Feeders~~Harbin Dairy Co., Ltd. (“Wanjiabao Dairy”) has been a purchaser of our fresh milk products since October 26, 2015. Our current contractual arrangement provides for the purchase of our milk at the base price of RMB 3.80 or $0.57/kilogram. However, the base price is based on the quality of our fresh milk, namely, fat percentage of 3.1%, protein percentage of 2.95%, and the Level One microorganism quality (less than 0.5 million / ml). Our current contractual arrangement with Wanjiabao Dairy expires on October 25, 2017.

~~Xinhua~~Harbin ~~Cattle~~Ruduobao ~~outsources~~Dairy ~~over 90% of the cow feeding to local farmers pursuant to a series of entrust feeding agreements with the local farmers~~Co. ~~Pursuant to these agreements~~, we ~~pay for the fostering fees and feed costs~~Ltd. ~~In return, the local farmers provide us with the fresh milk produced by the cows.~~

~~Pursuant~~Harbin toRuduobao ~~these~~Dairy ~~entrust~~Co., ~~feeding~~Ltd. ~~agreements,~~(“Ruduobao weDairy”) ~~entrust~~has ~~our~~been ~~cattle~~a topurchaser ~~local~~of ~~farmers~~our tofresh ~~assist~~milk inproducts asince ~~more~~October ~~efficient~~28, ~~means~~2015. toOur ~~produce~~current ~~fresh~~contractual ~~milk,~~arrangement asprovides for ~~well~~the aspurchase ~~manure,~~of ~~used in~~ our ~~production~~ ofmilk ~~organic~~at ~~fertilizer.~~the Inbase ~~that~~price ~~regard,~~of weRMB ~~pay~~3.80 aor ~~monthly~~$0.57/kilogram. ~~fee~~However, tothe ~~local~~base ~~farmers~~price ~~that~~is ~~correlate~~based toon the ~~number~~quality of ~~calves,~~ ~~cattle~~our ~~and~~fresh ~~cows~~milk, ~~that~~namely, ~~are~~fat ~~placed~~percentage inof ~~their care~~3.1%, ~~Pursuant~~protein topercentage ~~the~~of ~~agreements~~2.95%, ~~local farmers are responsible for the feeding~~ and ~~raising of~~ the ~~cattle~~Level asOne ~~well~~microorganism asquality ~~the~~(less ~~fresh milk production~~than 0.5 ~~Additionally,~~million ~~these~~/ ~~local~~ml). ~~farmers~~Our ~~ensure~~current ~~that~~contractual ~~each~~arrangement ~~cow~~with ~~produces~~Ruduobao aDairy ~~minimum of~~expires 20on ~~kilogram~~October of27, ~~milk daily~~2017.

~~From July 2014 to February 2015, monthly feeding~~Organic fee to the local farmers is $8.13 per baby cow, $11.39 per pre-adult cow, $16.27 per young cow and $32.54 per adult cow, respectively; food costs every month to the local farmers is $46 per baby cow, $57 per pre-adult cow, $62 per young cow, and $88 per adult cow, respectively. Since March 2015, the monthly feeding fee remains the same while the foods costs increased to $54 per baby cow, $68 per pre-adult cow, $75 per young cow, and $111 per adult cow, respectively.Fertilizer

~~Local~~As a ~~farmers~~by-product ~~are~~of ~~responsible~~the ~~for~~fresh milk production ~~and~~, ~~are~~we ~~required~~use ~~to timely deliver~~ the ~~milk~~resulting ~~production~~manure ~~daily.~~as ~~All~~a source of ~~the~~additional ~~raw~~revenue. ~~milk~~We ~~produced~~combine by the ~~cattle~~raw ~~is owned by us. Additionally~~material, the ~~local farmers are contractually obligated to conduct periodic breeding for the young cattle and cows~~manure, atwith ~~our~~inoculating ~~expense.~~complex ~~The breeding~~microbial ~~is overseen by veterinarians of our choosing. All calves produced by our entrusted cows are our property~~agents, and ~~all~~then ~~calve births~~ferment ~~are~~the ~~overseen~~product byusing ~~veterinarians~~biological ofand ~~our~~chemical ~~choosing.~~processes ~~All cow waste produced by our entrusted cattle is owned by us. The local~~and ~~farmers~~microbial ~~are~~fermentation ~~obligated~~technology, towhich ~~collect~~produces the ~~waste and provide it to us for further processing, and eventual sale as~~ organic fertilizer.

~~Fresh~~Our fertilizer ~~Milk~~product ~~Customers~~is unique, in that it decomposes slowly, maintains long fertilizing effect and slow nutrient loss. It can effectively promote the proliferation of useful microorganisms and enhance soil fertility, resulting in more abundant crop growth.

~~Mengniu~~Zhongxian Information ~~Dairy~~has ~~Co.~~formed ~~Ltd~~a livestock business system which integrates fresh milk production and organic fertilizer production for direct sale to suppliers.

~~Mengniu~~The ~~Dairy~~sale ~~Co.~~of ~~Ltd.~~organic ~~(“Mengniu”) has~~fertilizer ~~been~~only amakes ~~purchaser~~up ofa ~~our~~very ~~raw~~small ~~milk~~amount ~~products~~of ~~since~~our ~~2006~~total revenue. ~~Our~~We ~~current~~generated ~~and~~USD ~~previous~~$47,537 in ~~contractual~~revenue ~~arrangement~~from ~~provides~~our ~~for~~organic ~~the~~fertilizer ~~purchase of~~sales ~~our~~in ~~milk at~~ the ~~base~~fiscal ~~price~~year ofended ~~RMB~~June ~~3.45~~30, or2016 ~~$0.55/kilogram.~~and ~~However~~USD 20,401 in ~~the~~revenue ~~base~~from ~~price~~our isorganic ~~based~~fertilizer onsales in the ~~quality~~fiscal ofyear ~~our~~ended June ~~raw milk~~30, ~~namely, fat percentage of 3~~2015.~~1%,~~ ~~protein~~Jianfa ~~percentage~~Bio-Organic ofFertilizer ~~2.95%,~~Plant ~~and~~ was the ~~Level~~sole ~~One~~customer ~~microorganism~~for ~~quality~~our ~~(less~~organic ~~than~~fertilizer ~~0.5~~products ~~million~~from /2006 ~~ml).~~to ~~Mengniu has~~June ~~renewed~~2011. aSince ~~two-year~~July ~~contractual~~2011, ~~commitment~~we tohave ~~continue~~been toselling ~~purchase~~our ~~raw~~organic fertilizer ~~milk~~ products ~~from~~to usHeilongjiang ~~until~~Soyang ~~February~~Bio ~~21,~~Energy ~~2016~~Development Ltd.

~~Mengniu accounted for 22.8% of all milk~~Sales ~~sales for the fiscal year ended June 30, 2015 and 43.4% of all milk sales for the fiscal year ended June 30, 2014.~~Commissions

~~Qiqihaer~~In addition ~~Heshan~~to ~~Dairy~~selling Cofresh milk to Chinese manufacturing and distribution companies of dairy products, we started to sell our milk cows to local farmers in exchange for monthly payments from the local farmers on their monthly milk sales since June 2011. The monthly payments represent the monthly installments, including interest, for the purchase price of milk cows sold, or a mix of ~~Ltd~~the purchase price and commissions for our assistance in arranging for their milk sales.

~~Qiqihaer~~In September ~~Heshan~~2011, ~~Dairy~~August ~~Co.~~2011, ~~Ltd.~~and ~~(“Heshan Dairy”)~~June ~~has~~2011, ~~been~~Xinhua aCattle ~~purchaser~~sold 3,787, 5,635, and 2,000 of ~~our~~its ~~fresh~~cows ~~milk~~to ~~products~~local ~~since~~farmers, ~~2011~~respectively. In ~~Our~~November ~~current~~and December 2014, Yulong sold 3,714 and ~~previous~~2,995 ~~contractual~~cows ~~arrangement~~to ~~provides for~~local ~~the~~farmers ~~purchase~~respectively. 3,500 of ~~our~~the ~~milk~~cows atsold ~~the~~in ~~base~~2014 were ~~price~~purchased offrom ~~RMB~~outside ~~3.50~~unrelated orparties for $04,550,000.~~56/kilogram~~ The remaining cows sold were raised by Yulong. ~~However,~~According to the agreements ~~base~~signed ~~price~~with isthe ~~based~~local onfarmers in June 2011, the ~~quality~~sales ~~of our~~price ~~fresh~~will ~~milk,~~be ~~namely~~collected over five years, ~~fat~~with ~~percentage~~a minimum payment of ~~3.1~~20%, ~~protein~~of ~~percentage~~the ofsales 2price to be paid each year.95 The related receivable is recorded at its present value at a discount rate of 12%, ~~and~~which ~~the~~is ~~Level~~commensurate ~~One~~with ~~microorganism~~interest ~~quality~~rates ~~(less~~for ~~than 0.5~~notes ~~million~~with /similar ~~ml)~~risk. ~~Heshan~~The ~~Dairy~~Company ~~has~~also ~~renewed~~entered ainto ~~one~~agreements ~~year~~with ~~contractual~~these local ~~commitment~~farmers tofor ~~continue~~a to30% ~~purchase~~commission ~~fresh~~of their monthly milk ~~products~~sales ~~from~~generated by the cows sold in exchange for the Company’s usassistance ~~until~~in ~~December~~arranging ~~31,~~for ~~2014~~the sale of the milk.

~~Heshan~~Pursuant to ~~Dairy~~the ~~accounted~~agreements ~~for~~signed ~~20.3~~in August 2011, September 2011, November 2014, and December 2014, the sales price will be collected in monthly installments plus interest at 7% on the outstanding balance, over the remaining useful lives of the cows, which range ~~all~~from ~~our~~one to eight years. Local farmers are required to pay 30% of monthly milk sales ~~for~~generated from the ~~fiscal~~cows ~~year~~purchased ~~ended~~by ~~June~~the farmers. The 30,% ~~2015~~monthly payments are to be applied first to the monthly installment of principal for the cows sold and 13the balance as commission income for the Company’s assistance in arranging for the sale of the milk.9 The 30% monthly payments will continue over the entire remaining life of ~~all~~the ~~our~~cows ~~milk~~sold. ~~sales~~While the 30% rate and the amount applied to monthly installments for the ~~fiscal~~purchase price ~~year~~of ~~ended~~the ~~June~~cows 30remain the same, ~~2014~~the amount of sales commission income will vary depending on total monthly milk sales and the progress of repayments towards the purchase price.

7In August 2015, Xinhua Cattle sold 200 cows to an outside party at a total price of RMB 160,000(US $24,861) including insurance of RMB 100,000 (US $ 15,540). The cows had a net book value approximately $43,000 as of the disposal date, which includes cost basis approximate $560,000 and accumulated depreciation approximately $516,000. In May 2016, Xinhua Cattle sold 904 cows to an outside party at a total price of RMB 3,616,000(US $561,854). The cows had a net book value approximately $564,000 as of the disposal date, which includes cost basis approximate $1,147,000 and accumulated depreciation approximately $583,000. In June 2016, Xinhua Cattle also sold 500 female calves to an outside party at a total price of RMB 2,000,000 (US $310,760). The cost of these female calves was approximate $322,000.

~~Heilongjiang Longxing Dairy Co., Ltd.~~6

~~Heilongjiang~~In November ~~Longxing~~2015, ~~Dairy~~Yulong ~~Co.,~~Cattle ~~Ltd. (“Longxing~~Sold ~~Dairy”)~~347 ~~has~~cows ~~been~~to aan ~~purchaser~~outside ofparty ~~our~~at ~~fresh~~a ~~milk~~total ~~products~~price ~~since~~of ~~2011.~~RMB ~~Our~~1,144,800 ~~current~~(US ~~and~~$177,879) ~~previous~~including ~~contractual~~insurance ~~arrangement~~of ~~provides~~RMB ~~for~~104,100 ~~the~~(US ~~purchase~~$ of16,175). ~~our~~The ~~milk~~cows athad ~~the~~a ~~base~~net ~~price~~book ofvalue ~~RMB~~approximately ~~3.50 or~~ $~~0.56/kilogram. However~~254,000 as of the ~~base~~disposal ~~price~~date, iswhich ~~based~~includes cost onbasis ~~the~~approximate ~~quality~~$588,000 ofand ~~our~~accumulated ~~fresh~~depreciation ~~milk,~~approximately ~~namely~~$335,000. ~~fat~~In ~~percentage~~May ~~of 3.1%~~2016, ~~protein~~Yulong ~~percentage~~Cattle ofsold ~~2.95%,~~331 ~~and~~cows ~~the~~to ~~Level~~an outside ~~One~~party ~~microorganism quality~~at ~~(less~~a ~~than~~total ~~0.5~~price ~~million~~of /RMB ml1,390,200 (US $216,009). ~~Longxing~~The ~~Dairy~~cows ~~has~~had ~~renewed~~ a ~~one-year~~net ~~contractual~~book ~~commitment~~value toapproximately ~~continue~~$324,000 toas ~~purchase~~of ~~fresh~~the ~~milk~~disposal ~~products~~date, ~~from~~which usincludes ~~until~~cost ~~December~~basis 31approximate $709,000 ~~2014~~and accumulated depreciation approximately $385,000.

~~Longxing~~By ~~Dairy~~the ~~accounted~~end ~~for 19.4%~~ of ~~all~~ ~~our~~June ~~milk~~30, ~~sales~~2015, ~~for~~we ~~the~~had ~~fiscal~~35,058 cows, ~~year~~among ~~ended~~which, ~~June 30~~25,821 ~~2015~~cows ~~and~~continue ~~14.3%~~to ofbe ~~all~~fed ~~our~~by ~~milk~~local ~~sales~~farmers, ~~for~~4,200 ~~the~~cows ~~fiscal~~are ~~year~~maintained ~~ended~~by ~~June~~Xinhua 30Cattle, ~~2014~~and 5,037 cows are maintained by Yulong Cattle.

~~Heilongjiang~~Between ~~Nongken~~July ~~Delong~~and ~~Dairy~~August Co2015, monthly feeding fee to the local farmers is $7.77 per baby cow, $10.88 per pre-adult cow, $15.54 per young cow and $31.08 per adult cow, respectively; ~~Ltd~~food costs every month to the local farmers is $51 per baby cow, $65 per pre-adult cow, $71 per young cow, and $106 per adult cow, respectively. Since August 2015, the monthly feeding fee remains the same while between September and November the food costs increased to $61 per baby cow, $76 per pre-adult cow, $85 per young cow, and $127 per adult cow, respectively. From November 2015, the food costs increased further to $70 per baby cow, $85 per pre-adult cow, $101 per young cow, and $233 per adult cow, respectively.

~~Heilongjiang~~The increase ~~Nongken~~in ~~Delong~~feeding ~~Dairy~~costs ~~Co., Ltd.~~was ~~(“Nongken~~the ~~Delong~~main ~~Dairy”)~~reason ~~has~~that ~~been~~we adisposed ~~purchaser~~ of ~~our~~a ~~fresh~~large ~~milk~~number ~~products since 2011. Our current and previous contractual arrangement provides for the purchase~~ of our ~~milk at the base price of RMB 3~~cows.50 orThe ~~$0.56/kilogram.~~bulk ~~However,~~sales ~~the base price is based on the quality~~ of ~~our fresh~~ milk, ~~namely,~~cows ~~fat percentage of 3.1%, protein percentage of 2.95%, and the Level One~~provide ~~microorganism~~us ~~quality~~with ~~(less~~a ~~than~~new ~~0.5~~revenue ~~million~~stream /with ~~ml).~~relatively ~~Nongken~~low ~~Delong~~direct ~~Dairy~~costs ~~has~~as ~~renewed~~the alocal ~~one-year~~farmers ~~contractual~~assumed ~~commitment~~the ~~to continue to purchase fresh~~ milk ~~products~~production ~~from us until December 31, 2014~~function.

~~Nongken Delong Dairy accounted for~~Research ~~18.6% of all our milk sales for the fiscal year ended June 30, 2015~~ and ~~14.4% of all our milk sales for the fiscal year ended June 30, 2014.~~Development

~~SuihuaDongxing~~We had ~~Dairy~~no ~~Co.~~expenses on research and development activities during the fiscal years ended June 30, ~~Ltd~~2016 and 2015.

~~SuihuaDongxing Dairy Co., Ltd. (“Dongxing~~Intellectual Dairy”) has been a purchaser of our fresh milk products since 2011. Our current and previous contractual arrangement provides for the purchase of our milk at the base price of RMB 3.50 or $0.56/kilogram. However, the base price is based on the quality of our fresh milk, namely, fat percentage of 3.1%, protein percentage of 2.95%, and the Level One microorganism quality (less than 0.5 million / ml). Dongxing Dairy has renewed a one-year contractual commitment to continue to purchase fresh milk products from us until December 31, 2014.Property

~~Dongxing~~We regard ~~Dairy~~the ~~accounted~~protection ~~for 18.9%~~ of ~~all~~our copyrights, service marks, trademarks, trade secrets and other intellectual property rights as critical to our ~~milk~~future ~~sales~~success. ~~for~~We ~~the~~rely ~~fiscal~~on ~~year~~contractual ~~ended~~restrictions ~~June~~to ~~30,~~protect ~~2015~~our proprietary rights in products and 14services.0% ofWe ~~all~~cannot assure ~~our~~you ~~milk~~that ~~sales~~these ~~for~~contractual arrangements or the ~~fiscal~~other ~~year~~steps ~~ended~~taken ~~June~~by ~~30,~~us to protect our intellectual property will prove ~~2014~~sufficient to prevent misappropriation of our technology or to deter independent third-party development of similar technologies.

~~Organic Fertilizer~~Trademarks

AsThrough Zhongxian ~~a by-product of the fresh milk production~~Information, we ~~use~~have registered the ~~resulting~~following ~~manure~~trademark aswith ~~a source of additional revenue. We combine~~ the ~~raw~~Trademark ~~material~~Office, ~~the~~State ~~manure,~~Administration ~~with~~for ~~inoculating complex~~Industry ~~microbial agents,~~ and ~~then~~Commerce ~~ferment~~in the ~~product using biological and chemical processes and microbial fermentation technology, which produces the organic fertilizer.~~PRC:

Our fertilizer product is unique, in that it decomposes slowly, maintains long fertilizing effect and slow nutrient loss. It can effectively promote the proliferation of useful microorganisms and enhance soil fertility, resulting in more abundant crop growth.

No.

Registration No.

Trademark

Registrant

Item Category

Expiration

Date

5980762

MANCUNXIANG

Zhongxian Information

Category No. 30 (Staple food): Coffee, tea, cocoa, sugar, rice, tapioca, sago, artificial coffee; flour and preparations made from cereals, bread, pastry and confectionery, ices; honey, treacle; yeast, baking-powder, salt, mustard; vinegar, sauces (condiments); spices; ice.

December 13, 2019

4705072

ZHONGXIAN
PROPERTY

Zhongxian Information

Category No. 31 (Natural agricultural products): Agricultural, horticultural and forestry products and grains not included in other classes; live animals; fresh fruits and vegetables; seeds, natural plants and flowers; foodstuffs for animals, malt.

March 6,
2018

4705070

ZHONGXIAN
INFORMATION

Zhongxian Information

Category No. 38 (Communication services): Telecommunications.

January 6,
2019

4705071

ZHONGXIAN
TECHNOLOGY

Zhongxian Information

Category No. 42 (Scientific and technological services): Scientific and technological services and research and design relating thereto; industrial analysis and research services; design and development of computer hardware and software.

January 6,
2019

~~Zhongxian~~We plan ~~Information~~to ~~has~~file ~~formed~~for aan ~~livestock business~~extension ~~system~~with ~~which~~the ~~integrates~~Trademark ~~fresh~~Office ~~milk~~of ~~production~~the ~~and~~above ~~organic~~trademark ~~fertilizer~~prior ~~production~~to ~~for~~the ~~direct~~expiration ~~sale to suppliers~~date.

The sale of organic fertilizer only makes up a very small amount of our total revenue. We generated USD $20,401 in revenue from our organic fertilizer sales in the fiscal year ended June 30, 2015 and USD 20,199 in revenue from our organic fertilizer sales in the fiscal year ended on June 30, 2014. Jianfa Bio-Organic Fertilizer Plant was the sole customer for our organic fertilizer products from 2006 to June 2011. Since July 2011, we have been selling our organic fertilizer products to Heilongjiang Soyang Bio Energy Development Ltd.7

8Copyright

~~Sales~~The Company ~~Commissions~~currently does not own any copyrights. The copyright of Zhongxian Agricultural Economy Network Services System V1.0 and Zhongxian Agricultural Capital Information Services System V1.0 were previously contributed to the Company by its shareholders and have now been reverted back to such shareholders.

~~In addition to selling fresh milk to Chinese~~Domain manufacturing and distribution companies of dairy products, we started to sell our milk cows to local farmer in exchange for monthly payments from the local farmers on their monthly milk sales since June 2011. The monthly payments represent the monthly installments, including interest, for the purchase price of milk cows sold, or a mix of the purchase price and commissions for our assistance in arranging for their milk sales.Names

~~In June 2011, Xinhua~~Zhongxian ~~sold~~Information ~~2,000~~owns ~~milk cows to six local farmers with~~ the ~~purchase~~domain ~~price~~name ~~being paid in installments over a five-year period with a minimum payment~~ of ~~20% of the sales price annually~~ www.hljzhongxian.com (Registration No ~~down payment was made by the farmers for these sales in June 2011~~.: InHei ~~August~~ICP ~~2011, through~~Bei initial negotiation and subsequent modification of sales terms, Xinhua sold 5,635 milk cows to 20 local farmers with a 10% down payment plus monthly installments with interest at 7% on any remaining principal payment over a period of the remaining useful life of the cows sold10200342). In September 2011, Xinhua also sold 3,787 milk cows to 13 local farmers with monthly installments over a period of the remaining useful life of the cows sold with no down payment. The receivables related to the sales of these all cows is included in notes receivable in the accompanying consolidated balance sheets as of June 30, 2015 and 2014. In addition to monthly installments for the purchase price of the cows sold, these local farmers who bought our cows in August and September 2011 also pay commissions to us each month for our assistance in arranging for the sale of their milk. In November and December 2014, Yulong sold 3,714 and 2,995 cows, respectively to 37 local farmers.

~~Pursuant to the agreements~~Government signed in August 2011, September 2011, November 2014, and December 2014, the sales price will be collected in monthly installments plus interest at 7% on the outstanding balance, over the remaining useful lives of the cows, which range from one to eight years. Local farmers are required to pay 30% of monthly milk sales generated from the cows purchased by the farmers. The 30% monthly payments are to be applied first to the monthly installment of principal for the cows sold and the balance as commission income for the Company’s assistance in arranging for the sale of the milk. The 30% monthly payments will continue over the entire remaining life of the cows sold. While the 30% rate and the amount applied to monthly installments for the purchase price of the cows remain the same, the amount of sales commission income will vary depending on total monthly milk sales and the progress of repayments towards the purchase price.Regulation

~~By the end of June 30, 2015, we had 22,206~~We ~~cows,~~are ~~among~~subject ~~which,~~to ~~19,555~~inspection ~~cows~~of ~~continue~~the toLivestock beand ~~fed~~Veterinary byBureau ~~local~~each ~~farmers,~~quarter ~~400~~for ~~cows~~our ~~are~~breeder ~~maintained~~farms. byWe ~~Xinhua~~have ~~Cattle,~~never ~~and~~been ~~2,251 cows are~~penalized ~~maintained~~ by ~~Yulong~~the ~~Cattle~~bureau.

~~From July 2014 to Feb 2015, monthly feeding fee to the local farmers~~China of $8.13 per baby cow, $11.39 per pre-adult cow, $16.27 per young cow and $32.54 per adult cow, respectively; food costs every month to the local farmers of $46 per baby cow, $57 per pre-adult cow, $62 per young cow, and $88 per adult cow, respectively. Since March 2015, the monthly feeding fee remains the same while the foods costs increased to $54 per baby cow, $68 per pre-adult cow, $75 per young cow, and $111 per adult cow, respectively.Regulations

~~The increase in feeding~~This ~~costs~~section ~~was~~sets ~~the~~forth ~~main~~a ~~reason~~summary ~~that we disposed~~ of athe ~~large~~most ~~number~~significant ofChinese ~~our~~regulations ~~cows.~~or ~~The~~requirements ~~bulk~~that ~~sales~~may ofaffect ~~milk~~our ~~cows~~business ~~provides~~activities operated usin ~~with~~China aor ~~new~~our ~~revenue stream~~shareholders’ ~~with~~right ~~relatively~~to ~~low~~receive ~~direct~~dividends ~~costs~~and asother ~~the~~distributions ~~local~~of ~~farmers~~profits ~~assumed~~from the ~~milk~~PRC ~~production function~~subsidiaries.

~~Research~~Foreign Investment ~~and~~in ~~Development~~PRC Operating Companies

WeThe Foreign Investment ~~had~~Industrial noCatalogue jointly ~~expenses~~issued by the MOFCOM and the National Development and Reform Commission or the NDRC in 2007 classified various industries/business into three different categories: (i) encouraged for foreign investment; (ii) restricted to foreign investment; and (iii) prohibited from foreign investment. For any industry/business not covered by any of these three categories, they will be deemed industries/business permitted to have foreign investment. Except for those expressly provided restrictions, encouraged and permitted industries/business are usually 100% open to foreign investment and ownership. With regard to those industries/business restricted to or prohibited from foreign investment, there is always a limitation on ~~research~~foreign investment and ~~development~~ownership. The PRC Subsidiary’s business does not ~~activities~~fall ~~during~~under the ~~fiscal~~industry ~~years~~categories ~~ended~~that ~~June~~are 30restricted to, ~~2015~~or prohibited from foreign investment and ~~2014~~is not subject to the limitation on foreign investment and ownership.

~~Intellectual Property~~8

~~We regard the protection of our copyrights,~~Regulation service marks, trademarks, trade secrets and other intellectual property rights as critical to our future success. We rely on contractual restrictions to protect our proprietary rights in products and services. We cannot assure you that these contractual arrangements or the other steps taken by us to protect our intellectual property will prove sufficient to prevent misappropriation of ~~our~~Foreign ~~technology~~Currency ~~or to deter independent third-party development of similar technologies.~~Exchange

9Foreign currency exchange in the PRC is governed by a series of regulations, including the Foreign Currency Administrative Rules (1996), as amended, and the Administrative Regulations Regarding Settlement, Sale and Payment of Foreign Exchange (1996), as amended. Under these regulations, the Renminbi is freely convertible for trade and service-related foreign exchange transactions, but not for direct investment, loans or investments in securities outside the PRC without the prior approval of SAFE. Pursuant to the Administrative Regulations Regarding Settlement, Sale and Payment of Foreign Exchange (1996), Foreign Invested Enterprises (“FIEs”) may purchase foreign exchange without the approval of SAFE for trade and service-related foreign exchange transactions by providing commercial documents evidencing these transactions. They may also retain foreign exchange, subject to a cap approved by SAFE, to satisfy foreign exchange liabilities or to pay dividends. However, the relevant Chinese government authorities may limit or eliminate the ability of FIEs to purchase and retain foreign currencies in the future. In addition, foreign exchange transactions for direct investment, loan and investment in securities outside the PRC are still subject to limitations and require approvals from SAFE.

~~Trademarks~~Regulation of FIEs’ Dividend Distribution

~~Through~~The principal ~~Zhongxian~~laws ~~Information,~~and weregulations ~~have~~in ~~registered~~ the ~~following trademark~~PRC ~~with~~governing ~~the~~distribution ~~Trademark~~of ~~Office,~~dividends ~~State~~by ~~Administration~~FIEs ~~for Industry and Commerce in the PRC~~include:

No.	Registration No.	Trademark	Registrant	Item Category	Expiration Date
1	5980762	MANCUNXIANG	Zhongxian Information	Category No. 30 (Staple food): Coffee, tea, cocoa, sugar, rice, tapioca, sago, artificial coffee; flour and preparations made from cereals, bread, pastry and confectionery, ices; honey, treacle; yeast, baking-powder, salt, mustard; vinegar, sauces (condiments); spices; ice.	December 13, 2019
2	4705072	ZHONGXIAN PROPERTY	Zhongxian Information	Category No. 31 (Natural agricultural products): Agricultural, horticultural and forestry products and grains not included in other classes; live animals; fresh fruits and vegetables; seeds, natural plants and flowers; foodstuffs for animals, malt.	March 6, 2018
3	4705070	ZHONGXIAN INFORMATION	Zhongxian Information	Category No. 38 (Communication services): Telecommunications.	January 6, 2019
4	4705071	ZHONGXIAN TECHNOLOGY	Zhongxian Information	Category No. 42 (Scientific and technological services): Scientific and technological services and research and design relating thereto; industrial analysis and research services; design and development of computer hardware and software.	January 6, 2019

(i)	The Sino-foreign Equity Joint Venture Law (1979), as amended, and the Regulations for the Implementation of the Sino-foreign Equity Joint Venture Law (1983), as amended;

(ii)	The Sino-foreign Cooperative Enterprise Law (1988), as amended, and the Detailed Rules for the Implementation of the Sino-foreign Cooperative Enterprise Law (1995), as amended;

(iii)	The Foreign Investment Enterprise Law (1986), as amended, and the Regulations of Implementation of the Foreign Investment Enterprise Law (1990), as amended.

WeUnder these ~~plan~~regulations, toFIEs ~~file~~in ~~for~~the ~~extension~~PRC may pay dividends only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, foreign-invested enterprises in the ~~Trademark~~PRC are required to set aside at ~~Office~~least 10% of their respective accumulated profits each year, if any, to fund certain reserve funds unless such reserve funds have reached 50% of their respective registered capital. These reserves are not distributable as cash dividends. The board of directors of a FIE has the ~~above~~discretion ~~trademark~~to ~~prior~~allocate a portion of its after-tax profits to staff welfare and bonus funds, which may not be distributed to equity owners except in the ~~expiration~~event ~~date~~of liquidation.

~~Copyright~~Regulation of a Foreign Currency’s Conversion into RMB and Investment by FIEs

~~The~~On August ~~Company~~29, ~~currently~~2008, ~~does~~SAFE ~~not~~issued ~~own~~a Notice ~~any~~of ~~copyrights. The~~the ~~copyright~~General Affairs Department of ~~Zhongxian~~the ~~Agricultural~~State ~~Economy~~Administration ~~Network~~of ~~Services~~Foreign ~~System~~Exchange on ~~V1.0~~the Relevant Operating Issues concerning the Improvement of the Administration of Payment and ~~Zhongxian~~Settlement ~~Agricultural~~of Foreign Currency Capital ~~Information~~of ~~Services~~Foreign-Invested Enterprises or Notice 142, to further regulate the foreign exchange of FIEs. According to ~~System~~the V1Notice 142, FIEs shall obtain verification report from a local accounting firm before converting its registered capital of foreign currency into Renminbi, and the converted Renminbi shall be used for the business within its permitted business scope.0 The ~~were~~Notice ~~previously~~142 ~~contributed~~explicitly prohibits FIEs from using RMB converted from foreign capital to make equity investments in the ~~Company~~PRC, unless bythe ~~its~~domestic ~~shareholders~~equity ~~and~~investment ~~have~~is ~~now~~within the approved business scope of the FIE and has been ~~reverted~~approved ~~back~~by toSAFE ~~such~~in ~~shareholders~~advance.

~~Domain~~Regulation of ~~Names~~Foreign Exchange in Certain Onshore and Offshore Transactions

~~Zhongxian~~In October ~~Information~~2005, ~~owns~~SAFE issued the Notice ~~domain~~on ~~name~~Issues Relating to the Administration of Foreign Exchange in Fund-raising and Return Investment Activities of ~~www~~Domestic Residents Conducted via Offshore Special Purpose Companies, or SAFE Notice 75, which became effective as of November 1, 2005, and was further supplemented by two implementation notices issued by SAFE on November 24, 2005 and May 29, 2007, respectively.~~hljzhongxian~~ SAFE Notice 75 states that PRC residents, whether natural or legal persons, must register with the relevant local SAFE branch prior to establishing or taking control of an offshore entity established for the purpose of overseas equity financing involving onshore assets or equity interests held by them.~~com~~ ~~(Registration~~The Noterm “PRC legal person residents” as used in SAFE Notice 75 refers to those entities with legal person status or other economic organizations established within the territory of the PRC.: ~~Hei~~The ~~ICP~~term ~~Bei~~“PRC ~~10200342)~~natural person residents” as used in SAFE Notice 75 includes all PRC citizens and all other natural persons, including foreigners, who habitually reside in the PRC for economic benefit. SAFE implementation notice of November 24, 2005 further clarifies that the term “PRC natural person residents” as used under SAFE Notice 75 refers to those “PRC natural person residents” defined under the relevant PRC tax laws and those natural persons who hold any interests in domestic entities that are classified as “domestic-funding” interests.

~~Government Regulation~~9

WePRC residents are ~~subject~~required to ~~inspection~~complete amended registrations with the local SAFE branch upon (i) injection of equity interests or assets of an onshore enterprise to the ~~Livestock~~offshore entity, or (ii) subsequent overseas equity financing by such offshore entity. PRC residents are also required to complete amended registrations or filing with the local SAFE branch within 30 days of any material change in the shareholding or capital of the offshore entity, such as changes in share capital, share transfers, and ~~Veterinary~~long-term equity ~~Bureau~~or ~~each~~debt ~~quarter~~investments ~~for~~and ~~our~~these ~~breeder~~changes ~~farms~~do not relate to return investment activities. WePRC residents who have ~~never~~already ~~been~~organized or ~~penalized~~gained bycontrol of offshore entities that have made onshore investments in the ~~bureau~~PRC before SAFE Notice 75 was promulgated must register their shareholdings in the offshore entities with the local SAFE branch on or before March 31, 2006.

10Under SAFE Notice 75, PRC residents are further required to repatriate into the PRC all of their dividends, profits or capital gains obtained from their shareholdings in the offshore entity within 180 days of their receipt of such dividends, profits or capital gains. The registration and filing procedures under SAFE Notice 75 are prerequisites for other approval and registration procedures necessary for capital inflow from the offshore entity, such as inbound investments or shareholders loans, or capital outflow to the offshore entity, such as the payment of profits or dividends, liquidating distributions, equity sale proceeds, or the return of funds upon a capital reduction.

~~China~~ Government Regulations Relating to Taxation

~~This~~On March ~~section~~16, ~~sets~~2007, ~~forth~~the aNational ~~summary~~People’s ofCongress or NPC, approved and promulgated the PRC ~~most~~Enterprise Income Tax Law , ~~significant~~which ~~Chinese~~we ~~regulations~~refer orto ~~requirements~~as ~~that~~the ~~may~~New ~~affect~~EIT ~~our~~Law. ~~business~~The ~~activities~~New ~~operated~~EIT inLaw ~~China~~took oreffect ~~our~~on ~~shareholders’ right~~January to1, ~~receive~~2008. ~~dividends~~Under the New EIT Law, FIEs and ~~other~~domestic companies ~~distributions~~are subject to a uniform tax rate of ~~profits~~25%. The New EIT Law provides a five-year transition period starting from its effective date for those enterprises which were established before the ~~PRC~~promulgation ~~subsidiaries~~date of the New EIT Law and which were entitled to a preferential lower tax rate under the then-effective tax laws or regulations.

~~Foreign~~On December ~~Investment~~26, 2007, the State Council issued a Notice of Implementing Transitional Measures for Enterprise Income Tax, or the Notice, providing that the enterprises that have been approved to enjoy a low tax rate prior to the promulgation of the New EIT Law will be eligible for a five-year transition period since 1 January, 2008, during which time the tax rate will be increased step by step to the 25% unified tax rate set out in ~~PRC~~the ~~Operating~~New ~~Companies~~EIT Law. From 1 January, 2008, for the enterprises whose applicable tax rate was 15% before the promulgation of the New EIT Law, the tax rate will be increased to 18% for year 2008, 20% for year 2009, 22% for year 2010, 24% for year 2011, 25% for year 2012. For the enterprises whose applicable tax rate was 24%, the tax rate will be changed to 25% from January 1, 2008.

The New ~~Foreign~~EIT ~~Investment~~Law ~~Industrial~~provides ~~Catalogue~~that an income tax rate of 20% may be applicable to dividends payable to non-PRC investors that are “non-resident ~~jointly~~enterprises”. ~~issued~~Non-resident byenterprises ~~the~~refer ~~MOFCOM~~to ~~and~~enterprises ~~the~~which ~~National~~do ~~Development~~not ~~and~~have ~~Reform~~an ~~Commission~~establishment or ~~the~~place ~~NDRC~~of business in ~~2007~~the PRC, ~~classified~~or ~~various~~which ~~industries/~~have such establishment or place of business ~~into~~ ~~three~~in ~~different~~the ~~categories:~~PRC ~~(i)~~but ~~encouraged~~the ~~for~~relevant ~~foreign~~income ~~investment;~~is ~~(ii)~~not ~~restricted~~effectively connected with the establishment or place of business, to ~~foreign~~the ~~investment;~~extent ~~and~~such ~~(iii)~~dividends ~~prohibited~~ are derived from ~~foreign~~sources ~~investment~~within the PRC. ~~For~~The ~~any~~income ~~industry/business~~tax ~~not~~for non-resident ~~covered~~enterprises byshall ~~any~~be ofsubject ~~these~~to ~~three~~withholding ~~categories~~at the income source, ~~they~~with ~~will~~the bepayor ~~deemed~~acting ~~industries/business~~as the obligatory withholder ~~permitted~~under tothe ~~have~~New ~~foreign~~EIT ~~investment.~~Law, ~~Except~~and ~~for~~therefore ~~those~~such ~~expressly~~income ~~provided~~taxes ~~restrictions,~~generally ~~encouraged~~called ~~and~~withholding ~~permitted~~tax ~~industries/business~~in practice. The State Council of the ~~are~~PRC ~~usually~~has ~~100%~~reduced ~~open~~the withholding tax rate from 20% to ~~foreign~~10% ~~investment~~through ~~and~~the ~~ownership~~Implementation Rules of the New EIT Law. ~~With~~It ~~regard~~is tocurrently unclear ~~those~~in ~~industries/business~~what ~~restricted~~circumstances toa orsource ~~prohibited~~will be considered as located within the PRC. We are a U.S. holding company and substantially ~~from~~all ~~foreign~~of ~~investment,~~our ~~there~~income is ~~always~~derived afrom ~~limitation~~dividends onwe ~~foreign~~receive ~~investment~~from ~~and~~our ~~ownership.~~subsidiaries ~~The~~located in the PRC. ~~Subsidiary’s~~Thus, ~~business~~if we are considered as ~~does~~a ~~not~~“non-resident ~~fall~~enterprise” under the ~~industry~~New ~~categories~~EIT ~~that~~Law ~~are~~and ~~restricted~~the dividends paid to, orus ~~prohibited~~by ~~from~~our ~~foreign~~subsidiary ~~investment~~in ~~and~~the isPRC ~~not~~are considered income sourced within the PRC, such dividends may be subject to ~~limitation~~ ona ~~foreign~~10% ~~investment~~withholding ~~and ownership~~tax.

~~Regulation of Foreign Currency Exchange~~10

~~Foreign~~Such income ~~currency~~tax ~~exchange~~may inbe ~~the~~exempted ~~PRC~~or isreduced ~~governed~~ by athe ~~series~~State Council of ~~regulations, including~~ the ~~Foreign~~PRC ~~Currency~~or ~~Administrative~~pursuant ~~Rules~~to ~~(1996),~~a astax ~~amended,~~treaty ~~and~~between the ~~Administrative Regulations~~PRC ~~Regarding Settlement, Sale~~ and ~~Payment of Foreign Exchange (1996), as amended. Under these regulations,~~ the ~~Renminbi~~jurisdictions isin ~~freely~~which ~~convertible~~our ~~for trade and service~~non-~~related~~PRC ~~foreign~~shareholders ~~exchange~~reside. ~~transactions,~~For ~~but not for direct investment~~example, ~~loans or investments in securities outside~~ the ~~PRC~~10% ~~without~~withholding ~~the~~tax ~~prior~~is ~~approval~~reduced ofto ~~SAFE.~~5% ~~Pursuant~~pursuant to the ~~Administrative Regulations Regarding Settlement,~~ Double ~~Sale~~Tax ~~and~~Avoidance ~~Payment~~Agreement ofBetween ~~Foreign~~Hong ~~Exchange~~Kong ~~(1996),~~and ~~Foreign~~Mainland ~~Invested~~China if ~~Enterprises (“FIEs”) may purchase foreign exchange without~~ the ~~approval~~beneficial ofowner ~~SAFE~~in ~~for~~Hong ~~trade~~Kong ~~and~~owns ~~service-related~~more ~~foreign~~than ~~exchange transactions by providing commercial documents evidencing~~25% ~~these~~of ~~transactions. They may also retain foreign exchange, subject to a cap approved by SAFE, to satisfy foreign exchange liabilities or to pay dividends. However,~~ the ~~relevant~~registered ~~Chinese~~capital ~~government authorities may limit or eliminate the ability of FIEs to purchase and retain foreign currencies~~ in ~~the~~a ~~future.~~company ~~In addition, foreign exchange transactions for direct investment, loan and investment~~ in ~~securities outside~~ the PRC ~~are still subject to limitations and require approvals from SAFE~~.

~~Regulation~~The new tax law provides only a framework of ~~FIEs~~the enterprise tax provisions, leaving many details on the definitions of numerous terms as well as the interpretation and specific applications of various provisions unclear and unspecified. Any increase in the combined company’s ~~Dividend~~tax ~~Distribution~~rate in the future could have a material adverse effect on its financial conditions and results of operations.

~~The principal laws and regulations in the~~Regulations ~~PRC governing distribution~~ of ~~dividends~~Overseas byInvestments ~~FIEs~~and ~~include:~~Listings

~~(i)~~On August ~~The~~8, ~~Sino-foreign~~2006, ~~Equity~~six ~~Joint~~PRC ~~Venture~~regulatory ~~Law~~agencies, ~~(1979)~~including MOFCOM, asCSRC, ~~amended~~SASAC, SAT, SAIC and ~~the~~SAFE, ~~Regulations~~jointly ~~for~~amended and released the M&A ~~Implementation~~Rules, ofwhich ~~the~~became ~~Sino-foreign~~effective ~~Equity~~on ~~Joint~~September ~~Venture~~8, ~~Law~~2006. ~~(1983)~~This regulation, asamong ~~amended;~~other ~~(ii)~~things, ~~The~~includes ~~Sino-foreign~~provisions ~~Cooperative~~that ~~Enterprise~~purport to ~~Law~~require ~~(1988),~~that asan ~~amended,~~offshore SPV formed for purposes of overseas listing of equity interest in PRC companies and ~~the~~controlled ~~Detailed~~directly or ~~Rules~~indirectly ~~for~~by PRC companies or individuals obtain the ~~Implementation~~approval of CSRC prior to the ~~Sino-foreign~~listing ~~Cooperative~~and ~~Enterprise~~trading ~~Law~~of ~~(1995),~~such asSPV’s securities ~~amended;~~on ~~(iii)~~an ~~The~~overseas ~~Foreign~~stock ~~Investment~~exchange. ~~Enterprise~~On ~~Law~~September ~~(1986)~~21, ~~as amended~~2006, CSRC published on its official website procedures regarding its approval of overseas listings by SPVs. CSRC approval procedures require the filing of a number of documents with CSRC and it would take several months to complete the ~~Regulations~~approval process. The application of ~~Implementation~~the M&A Rules with respect to overseas listings of SPVs remains unclear with no consensus currently existing among the ~~Foreign~~leading ~~Investment~~PRC ~~Enterprise~~law ~~Law~~firms ~~(1990),~~regarding asthe ~~amended~~scope of the applicability of CSRC approval requirement.

~~Under these regulations, FIEs in the PRC may~~Regulations ~~pay~~on ~~dividends~~Work only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, foreign-invested enterprises in the PRC are required to set aside at least 10% of their respective accumulated profits each year, if any, to fund certain reserve funds unless such reserve funds have reached 50% of their respective registered capital. These reserves are not distributable as cash dividends. The board of directors of a FIE has the discretion to allocate a portion of its after-tax profits to staff welfare and bonus funds, which may not be distributed to equity owners except in the event of liquidation.Safety

11On June 29, 2002, the Work Safety Law (“WSL”) of the PRC was adopted by the Standing Committee of the 9th National People’s Congress and came into effect on November 1, 2002, as amended on August 27, 2009. The WSL provides general work safety requirements for entities engaging in manufacturing and business activities within the PRC. Additionally, Regulation on Work Safety Licenses (“RWSL”), as adopted by the State Council on January 7, 2004 effective on January 13, 2004, requires enterprises engaging in the manufacture of dangerous chemicals to obtain a work safety license with a term of three years. If a work safety license needs to be extended, the enterprise must go through extension procedures with authorities three months prior to its expiration. In addition, on May 17, 2004, the Measures for Implementation of Work Safety Licenses of Dangerous Chemicals Production was promulgated as implementing measures to the Regulation on Work Safety Licenses which provides that entities producing dangerous chemicals are required to obtain work safety licenses pursuant to specific requirements. Without work safety licenses, no entity may engage in the formal manufacture of dangerous chemicals.

~~Regulation~~The Regulations on the Safety Administration of aDangerous ~~Foreign~~Chemicals ~~Currency’s~~(“RSADC”) was promulgated by the State Council on ~~Conversion~~January ~~into~~26, ~~RMB~~2002, effective as of March 15, 2002. It sets forth general requirements for manufacturing and ~~Investment~~the bystorage ~~FIEs~~of dangerous chemicals in China. The RSADC requires that companies manufacturing dangerous chemicals establish and strengthen their internal regulations and rules on safety control and fulfill the national standards and other relevant provisions of the State. In addition, according to the RSADC, companies that manufacture, store, transport or use dangerous chemicals shall be required to obtain corresponding approvals or licenses with the State Administration of Work Safety and its local branches and other proper authorities. Companies that manufacture or store dangerous chemicals without approval or registration with the proper authorities can be shut down, ordered to stop manufacturing or ordered to destroy the dangerous chemicals. Such companies can also be subject to fines. If criminal law is violated, the persons chiefly liable, along with other personnel directly responsible for such impropriety, shall be subject to relevant criminal liability.

On August 29, 2008, SAFE issued a Notice of the General Affairs Department of the State Administration of Foreign Exchange on the Relevant Operating Issues concerning the Improvement of the Administration of Payment and Settlement of Foreign Currency Capital of Foreign-Invested Enterprises or Notice 142, to further regulate the foreign exchange of FIEs. According to the Notice 142, FIEs shall obtain verification report from a local accounting firm before converting its registered capital of foreign currency into Renminbi, and the converted Renminbi shall be used for the business within its permitted business scope. The Notice 142 explicitly prohibits FIEs from using RMB converted from foreign capital to make equity investments in the PRC, unless the domestic equity investment is within the approved business scope of the FIE and has been approved by SAFE in advance.11

~~Regulation of Foreign Exchange in Certain~~Regulations ~~Onshore~~on ~~and~~Environmental ~~Offshore Transactions~~Protection

~~In October 2005, SAFE issued the Notice~~According ~~on Issues Relating~~ to the ~~Administration~~Prevention ~~of Foreign Exchange in Fund-raising~~ and ~~Return~~Control ~~Investment Activities~~ of ~~Domestic~~Water ~~Residents Conducted~~Pollution ~~via Offshore Special Purpose Companies~~ Law, oras ~~SAFE~~adopted ~~Notice~~by ~~75,~~the ~~which~~Standing ~~became~~Committee ~~effective as~~ of ~~November~~the 1,10th ~~2005, and was~~National ~~further~~People’s ~~supplemented~~Congress ~~by two implementation notices issued by SAFE~~ on ~~November~~February 2428, ~~2005~~2008 and ~~May~~effective ~~29,~~on ~~2007,~~June ~~respectively. SAFE Notice 75 states that PRC residents~~1, ~~whether natural or legal persons~~2008, ~~must~~China ~~register~~adopted ~~with~~a ~~the~~licensing ~~relevant~~system ~~local~~for ~~SAFE~~pollutant discharge. ~~branch~~Companies ~~prior~~directly ~~to establishing~~ or ~~taking~~indirectly ~~control~~responsible ~~of an offshore entity established~~ for the ~~purpose~~discharge of ~~overseas~~industrial ~~equity~~waste ~~financing~~water ~~involving onshore assets~~ or ~~equity interests~~medical ~~held~~sewage ~~by them. The term “PRC legal person residents” as used in SAFE Notice 75 refers~~ to ~~those entities with~~ ~~legal~~waters ~~person~~shall ~~status~~be orrequired ~~other~~to ~~economic~~obtain ~~organizations~~a ~~established~~pollutant ~~within~~discharge ~~the territory of the PRC~~license. ~~The~~All ~~term~~companies ~~“PRC~~are ~~natural~~prohibited ~~person residents”~~from asdischarging ~~used in SAFE Notice 75 includes all PRC citizens~~ wastewater and ~~all~~sewage ~~other~~to ~~natural~~waters ~~persons,~~without ~~including~~or ~~foreigners, who habitually reside~~ in ~~the~~violation ~~PRC for economic benefit. SAFE implementation notice~~ of ~~November 24, 2005 further clarifies that~~ the ~~term~~ ~~“PRC~~terms ~~natural~~of ~~person residents” as used under SAFE Notice 75 refers to those “PRC natural person residents” defined under~~ the ~~relevant~~pollutant ~~PRC~~discharge ~~tax laws and those natural persons who hold any interests in domestic entities that are classified as “domestic-funding” interests~~license.

~~PRC residents are required to complete amended~~The ~~registrations~~Regulations ~~with~~on the ~~local~~Administration ~~SAFE branch upon: (i) injection~~ of ~~equity~~Construction ~~interests~~Projects orEnvironmental ~~assets~~Protection of(“RACPEP”), anas ~~onshore~~adopted ~~enterprise~~by to the ~~offshore~~ ~~entity,~~State orCouncil ~~(ii)~~on ~~subsequent~~November ~~overseas~~18, ~~equity~~1998 ~~financing~~and byeffective ~~such~~on ~~offshore~~November ~~entity.~~29, ~~PRC~~1998, ~~residents~~governs ~~are~~construction ~~also~~projects ~~required~~and tothe ~~complete~~impact ~~amended~~such projects ~~registrations~~will orhave ~~filing~~on ~~with~~ the ~~local~~environment. ~~SAFE~~Pursuant ~~branch~~to ~~within~~the 30RACPEP, ~~days~~the ofgoverning ~~any~~body ~~material~~is ~~change~~responsible infor supervising the ~~shareholding~~implementation ~~or capital~~ of ~~the~~ ~~offshore~~a ~~entity,~~three-tiered ~~such~~system asthat ~~changes~~includes in(i) ~~share~~reviewing ~~capital,~~and ~~share~~approving ~~transfers~~a ~~and~~construction ~~long-term~~project, ~~equity~~(ii) oroverseeing ~~debt~~the ~~investments~~construction project and ~~these~~(iii) ~~changes do not relate~~ to ~~return~~inspect ~~investment~~the ~~activities.~~finished ~~PRC~~construction ~~residents~~project ~~who~~and ~~have~~ensure ~~already~~that ~~organized~~all orharmful ~~gained~~pollutants ~~control~~are disposed of ~~offshore~~correctly. ~~entities~~Manufacturing ~~that~~companies ~~have~~are ~~made~~required ~~onshore~~to ~~investments~~apply infor ~~the~~inspection ~~PRC before SAFE Notice 75 was promulgated must register their shareholdings in the offshore entities~~ with ~~the~~environment ~~local~~protection ~~SAFE~~authorities ~~branch~~upon oncompletion orof ~~before~~a ~~March~~construction ~~31, 2006~~project.

~~Under SAFE Notice 75, PRC residents are further~~Food ~~required~~Safety toLaw ~~repatriate into the PRC all~~ of ~~their dividends, profits or capital gains obtained from their shareholdings in~~ the ~~offshore~~ ~~entity~~People’s ~~within~~Republic ~~180 days~~ of their receipt of such dividends, profits or capital gains. The registration and filing procedures under SAFE Notice 75 are prerequisites for other approval and registration procedures necessary for capital inflow from the offshore entity, such as inbound investments or shareholders loans, or capital outflow to the offshore entity, such as the payment of profits or dividends, liquidating distributions, equity sale proceeds, or the return of funds upon a capital reduction.China

~~Government~~The Food ~~Regulations~~Safety ~~Relating~~Law of the People’s Republic of China (the “Food Safety Law”) as adopted at the 7th Session of the Standing Committee of the 11th National People’s Congress of the People’s Republic of China and effective on June 1, 2009, governs the food safety in food production and business operation activities. Pursuant to ~~Taxation~~the Food Safety Law, food producers must establish an internal inspection and record system for raw materials and pre-delivery products, and food distributors must also establish internal systems to record and inspect food products procured from suppliers. In addition, any food additives that are not in the approved government catalog must not be used and no food products can be sold inspection-free.

~~On March 16, 2007, the National People’s~~Regulations ~~Congress~~on ~~or NPC, approved and promulgated~~ the ~~PRC~~Implementation ~~Enterprise~~of ~~Income Tax Law , which we refer to as~~ the ~~New~~Food ~~EIT~~Safety Law. ~~The New EIT Law took effect on January 1, 2008. Under the New EIT Law, FIEs and domestic companies are subject to a uniform tax rate~~ of ~~25%. The New EIT Law provides a five-year transition period starting from its effective date for those enterprises which were established before~~ the ~~promulgation~~People’s ~~date~~Republic of ~~the New EIT Law and which were entitled to a preferential lower tax rate under the then-effective tax laws or regulations.~~China

12The Regulations on the Implementation of the Food Safety Law of the People’s Republic of China (the “Regulations”) as adopted at the 73rd Standing Committee Meeting of the State Council on July 8, 2009 and effective on July 20, 2009, are promulgated in accordance with the Food Safety Law. The Regulations require that the local People’s Government at or above the country level shall perform the responsibility specified in the Food Safety Law, improve the ability for supervision and administration of food safety, ensure supervision and administration of food safety; establish and improve the coordination mechanism between food safety regulatory authorities, integrate and improve the food safety information network, and realize the sharing of food safety and food inspection information and other technical resources.

~~On December 26, 2007, the State Council issued~~Law aof ~~Notice on Implementing Transitional Measures for Enterprise Income Tax, or~~ the ~~Notice,~~People’s ~~providing~~Republic ~~that the enterprises that have been approved to enjoy a low tax rate prior to the promulgation~~ of ~~the~~China ~~New~~on ~~EIT~~Quality ~~Law~~and ~~will~~Safety be eligible for a five-year transition period since 1 January, 2008, during which time the tax rate will be increased step by step to the 25% unified tax rate set out in the New EIT Law. From 1 January, 2008, for the enterprises whose applicable tax rate was 15% before the promulgation of ~~the~~Agricultural New EIT Law, the tax rate will be increased to 18% for year 2008, 20% for year 2009, 22% for year 2010, 24% for year 2011, 25% for year 2012. For the enterprises whose applicable tax rate was 24%, the tax rate will be changed to 25% from January 1, 2008.Products

The ~~New EIT~~ Law ~~provides that an income tax rate~~ of ~~20%~~the ~~may~~People’s beRepublic ~~applicable to dividends payable to non-PRC investors that are “non-resident enterprises”. Non-resident enterprises refer to enterprises which do not have an establishment or place~~ of ~~business~~China inon ~~the~~Quality ~~PRC,~~and orSafety ~~which have such establishment or place~~ of ~~business~~Agricultural inProducts ~~the~~was ~~PRC~~adopted ~~but~~at the ~~relevant~~21st ~~income~~Meeting ~~is not effectively connected with~~ of the ~~establishment~~Standing orCommittee ~~place~~ of ~~business, to~~ the ~~extent~~Tenth ~~such~~National ~~dividends~~People’s ~~are~~Congress ~~derived~~on ~~from~~April ~~sources~~29, ~~within the PRC~~2006. ~~The~~This ~~income~~Law ~~tax~~was ~~for~~enacted ~~non-resident~~in ~~enterprises~~order ~~shall be subject~~ to ~~withholding at~~ ensure the ~~income~~quality ~~source,~~and ~~with~~safety ~~the~~of ~~payor~~agricultural ~~acting~~products, asmaintain the ~~obligatory~~health ~~withholder~~of ~~under~~ the ~~New~~general ~~EIT Law~~public, and ~~therefore~~promote ~~such income~~the ~~taxes~~development ~~generally~~agriculture and ~~called~~rural ~~withholding tax in practice~~economy. ~~The~~Pursuant ~~State Council of the PRC has reduced the withholding tax rate from 20%~~ to ~~10%~~this ~~through the Implementation Rules of the New EIT~~ Law., Itagricultural isproducts ~~currently~~distribution ~~unclear~~enterprises inshall ~~what~~establish ~~circumstances~~ a ~~source~~sound ~~will~~system ~~be considered as located within the PRC. We are a U.S. holding company and substantially all~~ of ~~our income is derived from dividends~~inspection weand ~~receive~~acceptance ~~from~~for ~~our~~their ~~subsidiaries located in the PRC~~purchases. ~~Thus~~In addition, ifagricultural weproducts ~~are~~that ~~considered~~fail ~~as a “non-resident enterprise” under the New EIT Law and the dividends paid~~ to uspass ~~by our subsidiary in~~ the ~~PRC~~inspection ~~are~~based ~~considered~~on ~~income sourced within~~ the ~~PRC,~~quality ~~such dividends~~and ~~may~~safety bestandards ~~subject~~of toagricultural aproducts ~~10%~~cannot ~~withholding~~be ~~tax~~marketed.

Such income tax may be exempted or reduced by the State Council of the PRC or pursuant to a tax treaty between the PRC and the jurisdictions in which our non-PRC shareholders reside. For example, the 10% withholding tax is reduced to 5% pursuant to the Double Tax Avoidance Agreement Between Hong Kong and Mainland China if the beneficial owner in Hong Kong owns more than 25% of the registered capital in a company in the PRC.12

~~The new tax law provides only a framework~~Compliance ofwith ~~the~~Environmental enterprise tax provisions, leaving many details on the definitions of numerous terms as well as the interpretation and specific applications of various provisions unclear and unspecified. Any increase in the combined company’s tax rate in the future could have a material adverse effect on its financial conditions and results of operations.Laws

~~Regulations~~We strive ofto ~~Overseas~~meet ~~Investments~~the requirements provided in environmental protection regulations, and regulations related to facility safety and ~~Listings~~quality control, throughout the design, maintenance and growth of our operation facilities and manufacturing process.

On August 8, 2006, six PRC regulatory agencies, including MOFCOM, CSRC, SASAC, SAT, SAIC and SAFE, jointly amended and released the M&A Rules, which became effective on September 8, 2006. This regulation, among other things, includes provisions that purport to require that an offshore SPV formed for purposes of overseas listing of equity interest in PRC companies and controlled directly or indirectly by PRC companies or individuals obtain the approval of CSRC prior to the listing and trading of such SPV’s securities on an overseas stock exchange. On September 21, 2006, CSRC published on its official website procedures regarding its approval of overseas listings by SPVs. CSRC approval procedures require the filing of a number of documents with CSRC and it would take several months to complete the approval process. The application of the M&A Rules with respect to overseas listings of SPVs remains unclear with no consensus currently existing among the leading PRC law firms regarding the scope of the applicability of CSRC approval requirement.Employees

~~Regulations~~We oncurrently ~~Work~~have ~~Safety~~approximately 172 employees of which Zhongxian Information has 8 employees, Xinhua Cattle has 78 employees and Yulong Cattle has 86 employees and all of our employees are full-time employees.

~~On June 29, 2002, the Work Safety Law (“WSL”)~~Item ~~of the PRC was adopted by the Standing Committee of the 9th National People’s Congress and came into effect on November 1, 2002, as amended on August 27, 2009~~1A. ~~The~~Risk ~~WSL provides general work safety requirements for entities engaging in manufacturing and business activities within the PRC~~Factors. Additionally, Regulation on Work Safety Licenses (“RWSL”), as adopted by the State Council on January 7, 2004 effective on January 13, 2004, requires enterprises engaging in the manufacture of dangerous chemicals to obtain a work safety license with a term of three years. If a work safety license needs to be extended, the enterprise must go through extension procedures with authorities three months prior to its expiration. In addition, on May 17, 2004, the Measures for Implementation of Work Safety Licenses of Dangerous Chemicals Production was promulgated as implementing measures to the Regulation on Work Safety Licenses which provides that entities producing dangerous chemicals are required to obtain work safety licenses pursuant to specific requirements. Without work safety licenses, no entity may engage in the formal manufacture of dangerous chemicals.

13Smaller reporting companies are not required to provide the information required by this item.

~~The Regulations on the Safety Administration~~Item ~~of Dangerous Chemicals (“RSADC”) was promulgated by the State Council on January 26, 2002, effective as of March 15, 2002~~1B. ItUnresolved ~~sets~~Staff forth general requirements for manufacturing and the storage of dangerous chemicals in China. The RSADC requires that companies manufacturing dangerous chemicals establish and strengthen their internal regulations and rules on safety control and fulfill the national standards and other relevant provisions of the State. In addition, according to the RSADC, companies that manufacture, store, transport or use dangerous chemicals shall be required to obtain corresponding approvals or licenses with the State Administration of Work Safety and its local branches and other proper authorities. Companies that manufacture or store dangerous chemicals without approval or registration with the proper authorities can be shut down, ordered to stop manufacturing or ordered to destroy the dangerous chemicals. Such companies can also be subject to fines. If criminal law is violated, the persons chiefly liable, along with other personnel directly responsible for such impropriety, shall be subject to relevant criminal liability.Comments

~~Regulations~~Smaller reporting oncompanies ~~Environmental~~are ~~Protection~~not required to provide the information required by this item.

~~According to the Prevention and Control of~~Item Water Pollution Law, as adopted by the Standing Committee of the 10th National People’s Congress on February 28, 2008 and effective on June 1, 2008, China adopted a licensing system for pollutant discharge2. ~~Companies directly or indirectly responsible for discharge of industrial waste water or medical sewage to waters shall be required to obtain a pollutant discharge license~~Properties. ~~All companies are prohibited from discharging wastewater and sewage to waters without or in violation of the terms of the pollutant discharge license.~~

The Regulations on the Administration of Construction Projects Environmental Protection (“RACPEP”), as adopted by the State Council on November 18, 1998 and effective on November 29, 1998, governs construction projects and the impact such projects will have on the environment. Pursuant to the RACPEP, the governing body is responsible for supervising the implementation of a three tiered system that includes (i) reviewing and approving a construction project, (ii) overseeing the construction project and (iii) to inspect the finished construction project and ensure that all harmful pollutants are disposed of correctly. Manufacturing companies are required to apply for inspection with environment protection authorities upon completion of a construction project.Farmland

~~Food~~All land ~~Safety~~in ~~Law~~China is government owned and cannot be sold to any individual or company. The Company obtained a “land use right” to use a track of land of 250,000 square meters at no cost through December 1, 2015. On May 10, 2013, the ~~People’s~~Company, ~~Republic~~entered into an agreement with the municipality of ~~China~~Qiqihaer to obtain the “land use right” to use this land from May 1, 2013 to Apr 30, 2063. The Company recorded the prepayment of RMB 37,500,000 ($6,060,000) as prepaid land lease. The prepaid lease is being amortized over the land use term of 50 years using the straight-line method. The remaining prepayment of $5,854,800 and $5,947,900 is included in prepaid land lease in the consolidated balance sheets as of June 30, 2015 and 2014, respectively. The lease provides for renewal options.

~~The Food Safety Law of the People’s~~On ~~Republic~~October of9, ~~China~~2011, (the ~~“Food~~Company ~~Safety~~entered ~~Law”)~~into asan ~~adopted~~operating atlease, ~~the~~from ~~7th~~October ~~Session~~9, of2011 ~~the~~to ~~Standing~~October ~~Committee~~8, of2021, ~~the~~with ~~11th National People’s Congress of~~ the ~~People’s~~municipality ~~Republic~~ of Heilongjiang ~~China~~to ~~and~~lease ~~effective on June 1~~16, ~~2009~~666,750 ~~governs~~square ~~the~~meters ~~food~~of ~~safety~~land. inThe ~~food production~~lease ~~and~~required ~~business~~the ~~operation~~Company ~~activities. Pursuant~~ to prepay the ~~Food~~ten ~~Safety~~year ~~Law,~~rental ~~food~~of ~~producers~~RMB ~~must establish an internal inspection~~30,000,000 ~~and~~(US$4,686,000). ~~record~~The ~~system~~related ~~for~~prepayment ~~raw~~of ~~materials and predelivery products~~$3,060,000 and ~~food distributors must also establish internal systems to record and inspect food products procured from suppliers. In addition~~$3,532,200 ~~any~~is ~~food~~included ~~addictives~~in ~~that~~prepaid ~~are~~land ~~not~~lease in the ~~approved~~consolidated ~~government catalog~~balance ~~must~~sheets ~~not~~as beof ~~used~~June 30, 2015 and no2014, ~~food~~respectively. ~~products~~The ~~can~~lease beprovides ~~sold~~for ~~inspection-free~~renewal options.

~~Regulations~~On February on25, 2013, the ~~Implementation~~Company obtained another “land use right” to use 427,572 square meters of land, from March 1, 2013 to February 28, 2063. The Company recorded the prepayment of RMB 77,040,000 (US$12,450,000) as prepaid land lease. The ~~Food~~prepaid ~~Safety~~lease ~~Law~~is being amortized over the land use term of 50 years using the ~~People’s~~straight-line ~~Republic~~method. The remaining prepayment of $11,986,191 ~~China~~and $12,177,662 is included in prepaid land lease in the consolidated balance sheets as of June 30, 2015 and 2014, respectively. The lease provides for renewal options.

~~The~~On May ~~Regulations~~7, on2015, the ~~Implementation~~Company ofobtained ~~the Food~~another ~~Safety~~“land ~~Law~~use ofright” ~~the~~to ~~People’s~~use ~~Republic~~238,001 square meters of ~~China~~land, ~~(the~~from ~~“Regulations”)~~May as7, ~~adopted~~2015 to atMay 6, 2045. In addition, the ~~73rd~~Company ~~Standing~~also ~~Committee Meeting~~leased ofall the ~~State~~constructions ~~Council~~ on ~~July~~the 8,land ~~2009~~which ~~and~~includes ~~effective~~cowsheds onat ~~July 20~~35,808 ~~2009,~~square meters ~~are~~on ~~promulgated~~top inof ~~accordance~~the ~~with~~land ~~the~~leased, ~~Food~~an ~~Safety Law.~~office ~~The~~building ~~Regulations~~at ~~require~~3,500 ~~that~~square ~~the~~meters ~~local~~and ~~People’s~~a ~~Government~~flat building at or3,500 ~~above~~square ~~the~~meters. ~~country~~The ~~level~~lease period ~~shall~~of ~~perform~~all ~~the~~these ~~responsibility specified~~constructions inis the ~~Food~~same ~~Safety~~as ~~Law, improve~~ the ~~ability~~land. ~~for~~The ~~supervision~~Company ~~and~~recorded ~~administration~~the prepayment of ~~food~~RMB ~~safety~~74,847,600 ~~ensure supervision and~~(US$12,215,000) ~~administration~~as ofprepaid ~~food~~lease. ~~safety;~~The ~~establish~~prepaid ~~and~~lease ~~improve~~is ~~the~~being ~~coordination~~amortized ~~mechanism~~over ~~between~~the ~~food~~lease ~~safety~~term ~~regulatory~~of ~~authorities,~~30 ~~integrate and~~years ~~improve~~using the ~~food~~straight-line ~~safety~~method. ~~information~~The ~~network~~remaining prepayment of $12,147,266 ~~and~~is ~~realize~~included ~~the~~in ~~sharing~~prepaid oflease ~~food~~in ~~safety~~the ~~and~~consolidated ~~food~~balance ~~inspection~~sheets ~~information~~as ~~and~~of ~~other technical~~June ~~resources~~30, 2015.

1413

~~Law~~On May of14, 2015, the ~~People’s~~Company ~~Republic~~obtained another “land use right” to use 283,335 square meters of ~~China~~land, from May 14, 2015 to May 13, 2045. In addition, the Company also leased all the constructions on ~~Quality~~the land which includes cowsheds at 42,100 square meters, an office building at 3,000 square meters and ~~Safety~~a flat building at 3,000 square meters. The lease period of ~~Agricultural~~all ~~Products~~these constructions is the same as the land. The Company recorded the prepayment of RMB 111,887,500 (US$18,260,000) as prepaid lease. The prepaid lease is being amortized over the lease term of 30 years using the straight-line method. The remaining prepayment of $18,158,595 is included in prepaid lease in the consolidated balance sheets as of June 30, 2015.

~~The Law of the People’s Republic of~~Rent ~~China~~expense oncharged ~~Quality~~to ~~and~~operations ~~Safety~~for ~~of Agricultural Products was adopted at~~ the ~~21st~~years ~~Meeting~~ended ofJune ~~the Standing Committee of the Tenth National People’s Congress on April 29~~30, ~~2006.~~2016 ~~This~~and ~~Law~~2015 was ~~enacted in order to ensure the quality and safety of agricultural products~~$1, ~~maintain the health of the general public~~789,248 and ~~promote the development agriculture and rural economy. Pursuant to this Law~~$1, ~~agricultural products distribution enterprises shall establish a sound system of inspection and acceptance for their purchases. In addition~~029, ~~agricultural~~601, ~~products that fail to pass the inspection based on the quality and safety standards of agricultural products cannot be marketed~~respectively.

~~Compliance with Environmental Laws~~Office Space

We ~~strive~~have torenewed ~~meet~~our ~~the~~previous ~~requirements provided~~arrangements inwith ~~environmental~~an ~~protection~~unrelated ~~regulations,~~third ~~and~~party ~~regulations~~to ~~related~~use toan ~~facility~~office ~~safety~~space ~~and~~at ~~quality~~no ~~control,~~cost ~~throughout~~from ~~the~~September ~~design~~1, ~~maintenance~~ ~~and~~2015, ~~growth~~to ofAugust 31, ~~our operation facilities and manufacturing process~~2020.

~~Employees~~Item 3. Legal Proceedings.

WeThere are ~~currently~~no ~~have~~actions, ~~approximately~~suits, ~~168~~proceedings, ~~employees~~inquiries or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of ~~which~~the ~~Zhongxian~~executive ~~Information~~officers ~~has~~of 6our ~~employees~~company or any of our subsidiaries, ~~Xinhua~~threatened against ~~Cattle~~or ~~has~~affecting 78our ~~employees~~company, ~~and~~our ~~Yulong~~common ~~Cattle~~stock, ~~has~~any 84of ~~employees~~our ~~and~~subsidiaries ~~all~~or of our companies or our subsidiaries' officers ~~employees~~or ~~are~~directors ~~full-time~~in ~~employees~~their capacities as such, in which an adverse decision could have a material adverse effect.

Item 1A 4. ~~Risk~~Mine ~~Factors~~Safety Disclosures.

~~Smaller reporting companies are not required~~Not ~~to provide the information required by this item~~Applicable.

~~Item 1B. Unresolved Staff Comments~~14

~~Smaller reporting companies are not required~~PART ~~to provide the information required by this item.~~II

Item 2 5. ~~Properties~~Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

~~Farmland~~Market Information

~~All land in China is government owned and~~Our ~~cannot~~common bestock ~~sold~~began to ~~any~~be ~~individual~~quoted oron ~~company.~~the ~~The~~OTC ~~Company~~Bulletin ~~obtained~~Board aon ~~“land~~July ~~use right” to use a track of land of 250~~8,~~000 square~~ ~~meters~~2010 atand nois ~~cost~~currently ~~through~~quoted ~~December~~on 1,OTCQB ~~2015.~~under ~~On May 10, 2013,~~ the ~~Company,~~symbol ~~entered into an agreement with the municipality of Qiqihaer to obtain the~~ “~~land use right~~CMCI” ~~to use this land from May 1, 2013 to Apr 30, 2063~~. ~~The Company recorded~~ ~~the~~There ~~prepayment~~has ofbeen ~~RMB~~a ~~37,500,000~~very ~~($6,060,000)~~limited aspublic ~~prepaid~~market ~~land~~for ~~lease.~~our ~~The~~common ~~prepaid lease is being amortized over the land use term of 50 years using the straight-line method~~stock. ~~The~~There ~~remaining~~can ~~prepayment~~be ofno ~~$5,854,800~~assurance ~~and~~that ~~$5,947,900~~a isliquid ~~included~~market infor ~~prepaid~~our ~~land~~securities ~~lease~~will inever ~~the consolidated balance sheets as of June 30, 2015 and 2014, respectively~~develop. ~~The lease provides for renewal options.~~

~~On October 9, 2011, the Company entered into~~The anfollowing ~~operating~~table ~~lease,~~sets ~~from~~forth ~~October 9, 2011 to October 8, 2021, with~~ the ~~municipality~~high ofand ~~Heilongjiang~~low tobid ~~lease~~quotations ~~16,666,750~~for ~~square meters~~our ofcommon ~~land.~~stock ~~The~~as ~~lease~~reported ~~required~~on the ~~Company~~OTCQB tofor ~~prepay~~ the ~~ten~~periods ~~year rental of RMB 30,000,000 (US$4,686,000)~~indicated. The related prepayment of $3,060,000 and $3,532,200 is included in prepaid land lease in the consolidated balance sheets as of June 30, 2015 and 2014, respectively. The lease provides for renewal options.

On February 25, 2013, the Company obtained another “land use right” to use 427,572 square meters of land, from March 1, 2013 to February 28, 2063. The Company recorded the prepayment of RMB 77,040,000 (US$12,450,000) as prepaid land lease. The prepaid lease is being amortized over the land use term of 50 years using the straight-line method. The remaining prepayment of $11,986,191 and $12,177,662 is included in prepaid land lease in the consolidated balance sheets as of June 30, 2015 and 2014, respectively. The lease provides for renewal options.

	High Bid* ($)		Low Bid* ($)
2015
Fourth quarter	$	0.65		0.51
Third quarter	$	0.54		0.33
Second quarter	$	0.89		0.46
First quarter	$	1.10		0.58
2016
Fourth quarter	$	0.34		0.15
Third quarter	$	0.34		0.16
Second quarter	$	0.63		0.46
First quarter	$	0.68		0.50

~~On May 7, 2015, the Company obtained another~~* “land use right” to use 238,001 square meters of land, from May 7, 2015 to May 6, 2045. In addition, the Company also leased all the constructions on the land which includes cowsheds at 35,808 square meters on top of the land leased, an office building at 3,500 square meters and a flat building at 3,500 square meters. The ~~lease~~quotations ~~period~~ of ~~all these constructions is~~ the ~~same~~ asclosing ~~the~~prices ~~land.~~reflect ~~The~~inter-dealer ~~Company recorded the prepayment of RMB 74~~prices,~~847,600~~ ~~(US$12,215,000)~~without asretail ~~prepaid lease. The prepaid lease is being amortized over the lease term of 30 years using the straight~~mark-~~line method. The remaining prepayment of $12~~up,~~147,266~~ ismarkdown ~~included in~~or ~~prepaid lease in the consolidated balance sheets as of June 30, 2015~~commission.

On May 14, 2015, the Company obtained another “land use right” to use 283,335 square meters of land, from May 14, 2015 to May 13, 2045. In addition, the Company also leased all the constructions on the land which includes cowsheds at 42,100 square meters, an office building at 3,000 square meters and a flat building at 3,000 square meters. The lease period of all these constructions is the same as the land. The Company recorded the prepayment of RMB 111,887,500 (US$18,260,000) as prepaid lease. The prepaid lease is being amortized over the lease term of 30 years using the straight-line method. The remaining prepayment of $18,158,595 is included in prepaid lease in the consolidated balance sheets as of June 30, 2015.Holders

~~Rent~~As ~~expense~~of ~~charged~~September to29, ~~operations for the fiscal years ended June 30~~2016, ~~2015~~there ~~and~~are ~~2014~~787 holders ~~was~~of ~~$1,029,601~~record ~~and~~of the ~~$860,813,~~Company’s ~~respectively~~common stock.

15Dividends

~~Office~~The Company ~~Space~~has not paid any cash dividends to date and does not anticipate or contemplate paying dividends in the foreseeable future. It is the present intention of management to utilize all available funds for the development of the Company's business.

~~We are under arrangements with an unrelated~~Securities ~~third~~Authorized ~~party~~for toIssuance ~~use~~under anEquity ~~office~~Compensation ~~space at no cost from September 1, 2010, to August 31, 2015.~~Plans

~~Item~~The following 3.table ~~Legal~~sets ~~Proceedings~~forth securities authorized for issuance under any equity compensation plans approved by our stockholders as well as any equity compensation plans not approved by our stockholders as of June 30, 2016.

From time to time, we may be involved in litigation in the ordinary course of business. We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. To our knowledge, there is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of our executive officers or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or any of our companies or our companies’ subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

Number of securities to be issued upon exercise of outstanding options, warrants, and rights (a)

Weighted- average exercise price of outstanding options, warrants, and rights (b)

Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)

Plan category

Plans approved by our stockholders:

2012 Stock Incentive Plan (1)

~~Item~~(1) 4On April 16, 2012, the Company granted 3,000,000 shares of restricted stock under the Plan to its employees and the shares were issued on April 26, 2012. ~~Mine~~The ~~Safety~~shares, ~~Disclosures~~with a fair value of $1,200,000 at the grant date, were fully vested on May 20, 2012 and the fair value of the shares was charged to operations for the fiscal year ended June 30, 2012. As of September 30, 2016, there are currently no shares available to be issued.

~~Not~~Item 6. ~~Applicable~~Selected Financial Data.

16Smaller reporting companies are not required to provide the information required by this item.

~~PART II~~15

Item 5 7. ~~Market for Registrant~~Management’s ~~Common~~Discussion ~~Equity,~~and ~~Related~~Analysis ~~Stockholder~~of ~~Matters~~Financial Condition and ~~Issuer~~Results ~~Purchases~~of ~~Of Equity Securities~~Operations.

~~Market~~This Management's ~~Information~~Discussion and Analysis of Financial Condition and Results of Operations is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity, and certain other factors that may affect our future results. The following discussion and analysis should be read in conjunction with our audited consolidated financial statements and the accompanying notes thereto included in "Item 8. Financial Statements and Supplementary Data."

~~Our~~This annual ~~common~~report ~~stock~~on ~~began~~Form to10-K becontains ~~quoted~~or onmay contain forward-looking statements (collectively the "Filings") and information ~~OTC~~that ~~Bulletin~~are ~~Board~~based onupon ~~July~~beliefs 8of, ~~2010~~ and isinformation currently ~~quoted~~available to, the Company's management as well as estimates and assumptions made by Company's management. Readers are cautioned not to place undue reliance on ~~OTCQB~~these ~~under~~forward-looking statements, which are only predictions and speak only as of the ~~symbol~~date ~~“CMCI”~~hereof. ~~There~~When ~~has~~used ~~been~~in athe ~~very~~filings, the words "anticipate," "believe," ~~limited~~"estimate," ~~public~~"expect," ~~market~~"future," ~~for~~"intend," ~~our~~"plan," ~~common~~or ~~stock~~the negative of these terms and similar expressions as they relate to the Company or the Company's management identify forward-looking statements. ~~There~~Such ~~can~~statements reflect bethe nocurrent ~~assurance~~view ~~that~~of athe ~~liquid~~Company ~~market~~with ~~for~~respect ~~our~~to ~~securities~~future ~~will~~events ~~ever~~and ~~develop~~are subject to risks, uncertainties, assumptions, and other factors. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned.

~~The~~Although the ~~following~~Company ~~table~~believes ~~sets~~that ~~forth~~the expectations reflected in the ~~high~~forward-looking statements are reasonable, the Company cannot guarantee ~~and~~future ~~low~~results, ~~bid~~levels ~~quotations~~of ~~for~~activity, ~~our~~performance, ~~common~~or ~~stock~~achievements. Except as ~~reported~~required onby applicable law, including the ~~OTCQB~~securities laws ~~for~~of the ~~periods~~United ~~indicated~~States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

	High Bid* ($)		Low Bid* ($)
2014
Fourth quarter	$	0.64		0.45
Third quarter	$	0.58		0.37
Second quarter	$	0.41		0.21
First quarter	$	0.24		0.10
2015
Fourth quarter	$	0.65		.51
Third quarter	$	0.54		0.33
Second quarter	$	0.89		0.46
First quarter	$	1.10		0.58

Our financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). These accounting principles require us to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Our financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management's judgment in its application. There are also areas in which management's judgment in selecting any available alternative would not produce a materially different result. The following discussion should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this report.

* The quotations of the closing prices reflect inter-dealer prices, without retail mark-up, markdown or commission.Overview

~~Holders~~We are a leading producer and distributor of raw fresh milk in China. We have two operating entities with an aggregate fresh milk production capacity of approximately 386 tons per day. We also have 63 exclusive individual partners on June 30, 2016 with an aggregate fresh milk production capacity of approximately 324 tons per day. We have four major customers, one of which is the leading dairy company in China. During the quarter ended December 31, 2015, we terminated the contracts with certain customers and entered into contracts with four new customers.

AsWe were incorporated on December 22, 2008 under the laws of ~~September~~the 30State of Nevada. We were formerly known as Trade Link. On April 4, ~~2015~~2011, ~~there~~the ~~are~~Board ~~787~~of ~~holders~~Directors of ~~record~~Trade Link filed an amendment to the Certificate of Incorporation with the State of ~~Company’s~~Nevada ~~common~~and ~~stock~~changed our name from Trade Link to China Modern Agricultural Information, Inc.

~~Dividends~~On January 28, 2011, we entered into a share exchange agreement by and among (i) Value Development Holding Limited, a British Virgin Islands company (“Value Development”), (ii) Value Development’s shareholders, (iii) us, and (iv) our former principal stockholders. Pursuant to the terms of the agreement, Value Development’s shareholders transferred to us all of the shares of Value Development in exchange for the issuance of 35,998,000 shares of our common stock. The shares issued to Value Development’s shareholders in the Securities Exchange constituted approximately 87.80% of our issued and outstanding shares of common stock as of and immediately after the consummation of the Securities Exchange. As a result of the Securities Exchange, Value Development became our wholly owned subsidiary and Value Development’s former principal shareholders became our principal shareholders.

~~The~~On January ~~Company~~28, ~~has~~2011, ~~not~~Value ~~paid~~Development ~~any~~completed ~~cash~~the ~~dividends~~acquisition of Jiasheng Consulting Managerial Co., Ltd., a PRC company (“Jiasheng toConsulting”). Jiasheng ~~date~~Consulting entered into a series of contractual agreements with Heilongjiang Zhongxian Information Co., Ltd., a PRC company (“Zhongxian Information”), Mr. Zhengxin Liu, our Chief Human Resource Officer and ~~does~~holder ~~not~~of ~~anticipate~~62% orthe ~~contemplate~~of ~~paying~~equity ~~dividends~~interest in Zhongxian Information, and Mr. Youliang Wang, our Chief Executive Officer and holder of 38% of the ~~foreseeable~~equity ~~future~~interest of Zhongxian Information. ItPursuant isto the ~~present~~contractual ~~intention~~arrangements, Jiasheng Consulting controls all managerial power of ~~management~~Zhongxian Information. The contractual arrangements include a shareholder voting rights proxy agreement, exclusive consulting and services agreement, exclusive call option agreement and equity pledge agreement, pursuant to ~~utilize~~which, ~~all~~Jiasheng ~~available~~Consulting ~~funds~~shall provide exclusive and complete business support and technical and consulting service to Zhongxian Information in exchange for an annual fee in the ~~development~~amount of ~~the~~Zhongxian ~~Company'~~Information’s ~~business~~yearly net profits after tax, and Zhongxian Information’s stockholders pledged their rights, title and equity interest in Zhongxian Information as security for the collection of such consulting and service fees provided in the equity pledge agreement.

~~Securities Authorized for Issuance under Equity Compensation Plans~~16

~~The~~Zhongxian Information ~~following~~was ~~table~~incorporated ~~sets~~in ~~forth~~China ~~securities~~in January 2005 with registered capital of RMB 10,000,000 or $1,206,800 US Dollars. In ~~authorized~~February ~~for~~2006, ~~issuance~~it ~~under~~acquired ~~any~~99% ~~equity~~of ~~compensation~~the ~~plans~~registered ~~approved~~capital byof ~~our~~Heilongjiang ~~stockholders~~Xinhua asCattle ~~well~~Industry asCo., ~~any~~Ltd., ~~equity~~a ~~compensation~~PRC ~~plans~~company (“Xinhua ~~not~~Cattle”), ~~approved~~which bywas ~~our~~incorporated ~~stockholders~~in asChina in December 2005 with registered capital of ~~June~~RMB 303,000,000 ~~2015~~or $371,580 US Dollars. Xinhua Cattle is located in Qiqihar, Heilongjiang Province, in northeast China and is a livestock company that engages in cow breeding and fresh milk production and distribution.

Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)

Weighted average exercise price of outstanding options, warrants and rights (b)

Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)

Plan category

Plans approved by our stockholders:

2012 Stock Incentive Plan (1)

~~(1)~~ On ~~April~~ July 16, ~~2012~~2015, ~~the~~we ~~Company~~transferred ~~granted~~100% ~~3,000,000~~of ~~shares~~the ofissued ~~restricted~~and ~~stock~~outstanding ~~under~~shares ~~the~~of ~~Plan~~Value Development to ~~its~~China ~~employees~~Dairy ~~and~~Corporation ~~the~~Ltd., ~~shares~~a ~~were~~Hong Kong ~~issued~~company on(“China ~~April 26~~Dairy”), ~~2012.~~which ~~The~~is ~~shares,~~60% ~~with~~owned aindirectly ~~fair~~by ~~value~~the ofCompany ~~$1,200,000~~through at the ~~grant~~Company’s ~~date~~wholly-owned subsidiary, ~~were~~Hope ~~fully~~Diary ~~vested~~Holdings ~~on May 20~~Ltd., ~~2012~~a ~~and~~British ~~the~~Virgin ~~fair~~Islands ~~value~~company of(“Hope ~~the~~Diary”). ~~shares~~These ~~was~~transactions ~~charged~~involve no toconsideration ~~operations~~received ~~for~~or ~~the~~paid ~~fiscal~~as ~~year~~Value ~~ended~~Development ~~June~~and ~~30,~~China ~~2012.~~Dairy Asare ofunder ~~September~~common ~~30,~~control ~~2015,~~with ~~there~~us ~~are~~and ~~currently~~this notransaction ~~shares~~is a ~~available~~restriction to beour ~~issued~~interests in Value Development.

17China Dairy was newly incorporated in January 2015 and did not have any significant assets or liabilities, or business operations, which is 100% owned by Company’s PRC corporate advisor. Further, the sole shareholder transferred the 10,000 shares of China Dairy to Value Development 60% and various shareholder and consultants of the Company 40% at HK$1.00 per share.

~~Item~~The 640% of the 10,000 shares of China Dairy were transferred from the sole shareholder of China Dairy to the following entities at HK$1.00 ~~Selected~~per ~~Financial~~share, which ~~Data~~has direct or indirect relationship with the shareholder and consultants of the Company: 3% to Beijing Ruihua Future, 4% to Donghe Group, 3% to Integral Capital, 20% to Dingxi Shanghai Fund and 10% to Zhiyuan International. Immediately after the transfer, 65,000 bonus shares were issued at no consideration for every existing share.

~~Smaller~~Value Development ~~reporting~~is ~~companies~~the ~~are~~sole ~~not~~shareholder ~~required~~of Value Development Group Limited, which is the sole shareholder of Harbin Jiasheng Consulting Managerial Co. Ltd. (“Jiasheng Consulting”), which is our subsidiary in China, with respect to ~~provide~~which the ~~information~~operating ~~required~~company, byZhongxian Information, is a variable interest entity. The effect of this ~~item~~transaction was to reduce the interest of ours in its operating company by 40%. We use the China Dairy’s offering price for the Proposed Offering to approximate the fair value of the 40% stock granted to the shareholder and consultants.

~~Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.~~17

~~The~~On September 16, 2015 ~~following~~our ~~discussion~~60%-owned ~~and~~subsidiary, ~~analysis~~Jiasheng Consulting, exercised its option to purchase all of the ~~results~~registered equity of ~~operations~~our operating subsidiary, Zhongxian Information from its stockholders Zhengxin Liu and ~~financial~~Youliang ~~condition~~Wang, ofwho are also the ~~Company~~members of our Board of Directors, for RMB10,000 (approximately $1,634). Prior to the ~~fiscal~~acquisition, ~~years~~Jiasheng Consulting controlled Zhongxian Information through a ~~ended~~series ~~June~~of 30contractual agreements, ~~2015~~which ~~and~~made ~~2014.~~Zhongxian ~~Such~~Information ~~discussion~~a variable interest entity, the effect of which was to cause the balance sheet and ~~analysis~~operating ~~should~~results beof ~~read~~Zhongxian inInformation ~~conjunction~~to be consolidated with ~~our~~those ~~consolidated~~of Jiasheng Consulting in our financial statements. ~~and~~As a result of the ~~related~~acquisition ~~notes~~by ~~thereto~~Jiasheng Consulting of the registered ownership of Zhongxian Information, the balance sheet and ~~other~~operating ~~financial~~results ~~information~~of ~~contained~~Zhongxian ~~elsewhere~~Information inhereafter ~~this~~continues ~~Annual~~to be consolidated with those of Jiasheng Consulting as ~~Report~~its 100% owned subsidiary. On April 8, 2016, our 60% owned subsidiary, China Dairy Corporation Limited issued 84,906,541 CDI shares at AUD $0.2 per share on ASX and raised total fund of AUD $16,981,308 (USD $13,021,267). After the IPO, our ownership was diluted to 53.07%.

~~Overview~~Our current structure is set forth below:

~~We are a leading~~Factors ~~producer~~Affecting ~~and~~Our ~~distributor~~Results of raw fresh milk in China. We have two operating entities with an aggregate fresh milk production capacity of approximately 234 tons per day. We also have 76 exclusive individual partners with an aggregate fresh milk production capacity of approximately 405 tons per day. We have five major customers, one of which is the leading dairy company in China.Operations

~~We were incorporated~~Our onoperating ~~December~~results ~~22,~~are ~~2008~~primarily ~~under~~affected ~~the~~by ~~laws of~~ the ~~State~~following ofpresent Nevada. We were formerly known as Trade Link. On April 4, 2011, the Board of Directors of Trade Link filed an amendment to the Certificate of Incorporation with the State of Nevada and changed our name from Trade Link to China Modern Agricultural Information, Inc. factors:

On● ~~January~~Dairy ~~28,~~Industry 2011, we entered into the Exchange Agreement by and among (i) Value Development, a British Virgin Islands company, (ii) Value Development’s shareholders, (iii) us, and (iv) our former principal stockholdersGrowth. ~~Pursuant~~ toWe ~~the~~believe ~~terms of~~ the ~~Exchange Agreement,~~market ~~Value~~for ~~Development’s~~dairy ~~shareholders~~products ~~transferred to us all of the shares of Value Development~~ in ~~exchange~~China for the ~~issuance~~ oflong ~~35,998,000~~term ~~shares~~will ofgrow ~~our~~rapidly, ~~common~~driven ~~stock.~~by ~~The shares issued to Value Development~~China’s ~~shareholders~~economic ingrowth, ~~the~~improved ~~Securities Exchange~~living ~~constituted~~quality ~~approximately 87.80% of our issued~~ and ~~outstanding~~increased ~~shares~~penetration of ~~common~~infant ~~stock as of and immediately after the consummation of the Securities Exchange~~formula. AsAccordingly, awe ~~result~~believe ofthat the ~~Securities~~demand ~~Exchange,~~for ~~Value~~fresh ~~Development~~milk ~~became~~will ~~our~~increase ~~wholly owned subsidiary and Value Development’s former principal shareholders became our principal shareholders~~rapidly.

On● ~~January~~Production ~~28, 2011, Value Development completed the acquisition of Jiasheng Consulting~~Capacity. ~~Jiasheng~~ ~~Consulting~~Our ~~entered~~revenue ~~into~~largely ~~a series~~depends ofon ~~agreements~~our ~~with~~production ~~Zhongxian Information, Mr~~capacity. ~~Zhengxin~~The ~~Liu,~~production ~~our~~capacity ~~Chief~~in ~~Human~~this ~~Resource~~industry ~~Officer~~is ~~and~~determined ~~holder~~by ~~of 62%~~ the ~~of equity interest in Zhongxian Information~~variety, ~~and~~aging ~~Mr. Youliang Wang, our Chief Executive Officer~~ and ~~holder~~number of ~~38%~~adult ~~of the equity interest of Zhongxian Information~~cows. ~~Pursuant to the Contractual Arrangements~~Accordingly, ~~Jiasheng~~we ~~Consulting~~acquired ~~controls~~Yulong ~~all~~Cattle ~~managerial~~in ~~power~~November of2011 Zhongxian Information. The contractual arrangements include a shareholder voting rights proxy agreement, exclusive consulting and services agreement, exclusive call option agreement and equity pledge agreement, pursuant to which, ~~Jiasheng~~increased ~~Consulting shall~~our ~~provide~~number ~~exclusive and complete business support and technical and consulting service to Zhongxian Information in exchange for an annual fee in the amount~~ of ~~Zhongxian~~cows ~~Information’s~~by ~~yearly net profits after tax~~3,800 and ~~Zhongxian~~improved ~~Information’s stockholders~~our ~~pledged~~production ~~their~~capacity ~~rights,~~by ~~title~~approximately ~~and~~90 ~~equity~~tons ~~interest~~per inday ~~Zhongxian~~when ~~Information as security for the collection of such consulting and service fees provided in the equity pledge agreement~~acquired.

~~Zhongxian~~● ~~Information was~~Raw ~~incorporated~~Material inSupplies ~~China~~and inPrices. ~~January~~The ~~2005~~per ~~with~~unit ~~registered~~cost ~~capital~~ of 10fresh ~~million~~milk ~~Renminbi~~is oraffected ~~$1,206,800~~by USprice ~~Dollars. In February~~volatility ~~2006,~~of itour ~~acquired~~raw ~~99%~~materials ofand ~~the~~feeding ~~registered~~expenses ~~capital~~in ofthe ~~Xinhua~~China ~~Cattle,~~markets. ~~which~~In ~~was~~response ~~incorporated~~to inthe ~~China~~increased incost, ~~December~~we ~~2005~~leased ~~with registered~~16,666,750 ~~capital~~square meters of ~~three~~grassland ~~million~~in ~~RMB~~October or2011, ~~$371~~427,~~580~~572 USsquare ~~Dollars.~~meters ~~Xinhua~~grassland ~~Cattle~~in isFebruary ~~located~~2013, inand ~~Qiqihar~~521,336 ~~Heilongjiang~~square ~~Province,~~meters ~~in northeast~~of ~~China~~grassland ~~and~~in isMay a2015. ~~livestock~~We ~~company~~believe that ~~engages~~the inhay ~~cow~~production ~~breading~~of ~~and~~this ~~fresh~~grassland ~~milk~~can ~~production~~satisfy our raw material demand and ~~distribution~~lower our feeding cost.

On● ~~November~~Change ~~23,~~of ~~2011, Zhongxian~~operation ~~Information~~method. ~~acquired~~We ~~100%~~disposed ofa ~~the~~large ~~equity~~number ~~interest~~ of ~~Yulong~~adult ~~Cattle~~cows into ~~exchange~~local ~~for (i) issuance of 9~~farmers,~~000,000~~ ~~shares~~introduced ~~of our~~distribution ~~common~~channel ~~stock,~~to them and ~~(ii)~~receive aup ~~cash~~to ~~payment~~30% of ~~$4,396,000,~~the tofarmers’ ~~Yulong~~milk ~~Cattle’s~~sales ~~former~~as ~~shareholders~~a commission. ~~Yulong~~It ~~Cattle~~makes ~~was~~our ~~incorporated on~~performance ~~December~~is 4,stably ~~2007~~increased ~~under~~and ~~the~~we ~~laws~~have ofenough ~~the~~production ~~PRC.~~resources ~~Yulong~~to ~~Cattle,~~feed ~~located~~more incows ~~Harbin,~~by ~~Heilongjiang,~~ourselves. inIn ~~northeast China~~addition, iswe asigned ~~livestock company~~with ~~that~~another ~~engages~~27 inlocal ~~cow~~farmers ~~breeding~~to ~~and~~feed ~~fresh milk distribution~~2,000 ~~and~~adult ~~primarily~~cows ~~generates~~in ~~its~~May ~~revenue~~2016 ~~from~~to ~~the~~increase ~~sale~~our ofproduction ~~fresh milk~~resources.

~~Recent Company Restructure~~18

~~Early in July 2015, Hope Diary acquired 60%~~Sale of China Dairy and became a wholly-owned subsidiary of the Company after Mr. Youliang Wang, Company’s Chief Executive Officer, transferred 100% of his interest in Hope Diary to the Company for $50,000 (the “Hope Diary Transfer”). On July 16, 2015, the Company transferred 100% of the issued and outstanding shares of Value Development to China Dairy, which is 60% owned indirectly by the Company through the Company’s wholly owned subsidiary, Hope Diary as a result of the Hope Diary Transfer (the “Restructure”).Cows

~~The~~In September ~~Restructure~~2011, ~~involves~~August ~~nominal~~2011, ~~consideration~~and June 2011, Xinhua Cattle sold 3,787, 5,635, and 2,000 of its cows to local farmers, respectively. ~~received~~In orNovember ~~paid~~and asDecember ~~Value~~2014, ~~Development~~Yulong sold 3,714 and ~~China~~2,995 ~~Dairy~~cows ~~are~~to ~~under~~local ~~common~~farmers ~~control~~respectively. 3,500 of the cows sold in 2014 were purchased from outside unrelated parties for $4,550,000. The remaining cows sold were raised by Yulong. According to the agreements ~~Company~~signed ~~and~~with ~~this~~the ~~transaction~~local ~~affects~~farmers in June 2011, the sales price will be collected over five years, with a minimum payment of 20% of the sales price to be paid each year. The related receivable is recorded at its present value at a discount rate of 12%, which is commensurate with interest rates for notes with similar risk. The Company also entered into agreements with these local farmers for a 30% commission of their monthly milk sales generated by the cows sold in exchange for the Company’s assistance ~~interests~~ in ~~Value~~arranging ~~Development~~for the sale of the milk.

AsPursuant to athe ~~result~~agreements ofsigned ~~the~~in ~~Restructure~~August 2011, September 2011, November 2014, and December 2014, the sales price will be collected in ~~Company~~monthly ~~indirectly~~installments ~~owns~~plus 60interest at 7% ofon ~~China~~the ~~Dairy~~outstanding ~~through~~balance, ~~its~~over ~~wholly-owned~~the ~~subsidiary,~~remaining ~~Hope~~useful ~~Diary~~lives of the cows, which ~~holds~~range from 60one to eight years. Local farmers are required to pay 30% of monthly milk sales generated from the ~~issued~~cows ~~and~~purchased ~~outstanding~~by the ~~shares~~farmers. The 30% monthly payments are to be applied first to the monthly installment of ~~China~~principal ~~Dairy,~~for ~~which~~the cows sold and the balance as commission income for the Company’s assistance in ~~turn~~arranging ~~holds~~for ~~100~~the sale of the milk. The 30% monthly payments will continue over the entire remaining life of the ~~issued~~cows sold. While the 30% rate and ~~outstanding~~the ~~shares~~amount applied to monthly installments for the purchase price of ~~Value~~the ~~Development~~cows remain the same, the amount of sales commission income will vary depending on total monthly milk sales and the progress of repayments towards the purchase price.

18In August 2015, Xinhua Cattle sold 200 cows to an outside party at a total price of RMB 160,000(US $24,861) including insurance of RMB 100,000 (US $ 15,540). The cows had a net book value approximately $43,000 as of the disposal date, which includes cost basis approximate $560,000 and accumulated depreciation approximately $516,000. In May 2016, Xinhua Cattle sold 904 cows to an outside party at a total price of RMB 3,616,000(US $561,854). The cows had a net book value approximately $564,000 as of the disposal date, which includes cost basis approximate $1,147,000 and accumulated depreciation approximately $583,000. In June 2016, Xinhua Cattle also sold 500 female calves to an outside party at a total price of RMB 2,000,000 (US $310,760). The cost of these female calves was approximate $322,000.

~~The~~In November ~~effect~~2015, Yulong Cattle Sold 347 cows to an outside party at a total price of ~~this~~RMB ~~transaction~~1,144,800 ~~was~~(US ~~the~~$177,879) ~~decrease~~including insurance inof ~~interest~~RMB 104,100 (US $ 16,175). The cows had a net book value approximately $254,000 as of the ~~Company~~disposal indate, ~~its~~which ~~operating~~includes ~~company~~cost basis byapproximate ~~40%~~$588,000 and accumulated depreciation approximately $335,000. ~~This~~In ~~will~~May ~~result~~2016, inYulong ~~the~~Cattle ~~Company~~sold ~~recognizing~~331 cows to an outside party at a ~~transaction~~total ~~loss~~price of RMB 1,390,200 (US $216,009). The cows had a net book value approximately $50324,~~300,~~000 ~~during~~as of the disposal ~~three~~date, ~~months~~which ~~ended~~includes ~~September~~cost 30basis approximate $709,000 ~~2015~~and accumulated depreciation approximately $385,000.

~~The purpose of the transfer of Value Development~~Increase ~~to China Dairy is to facilitate a public offering of the capital stock of China Dairy~~ in ~~Australia.~~payment ~~The completion of an offering in Australia is anticipated~~ to ~~further~~local ~~dilute the Company’s ownership of China Dairy.~~farmers

~~Company~~Due to the significant increase in forage price, our payment to local farmers was increased as well during last twelve months. Before March 2015, the payment which included feeding expense and forage cost was $51, $65, $75 and $115, respectively, which paid for calve, pre-adult cow, young cow and adult cow per month. Since April 2015, such expenses were increased to $59, $76, $87 and $137, respectively, paid for each type of cows. Since September 2015, such expenses were increased to $68, $87, $101 and $158, respectively. In the end of September 2015, we terminated the agreements with the original 200 local farmers and signed with new 179 local farmers near around Harbin city. However, it didn’st ~~current~~stop ~~structure~~the ~~are~~increase in forage price. Since November 2015, the feeding expenses ~~set~~and ~~forth~~forage ascosts ~~follows:~~were increased to $78, $96, $117 and $264 for each calve, pre-adult cow, young cow and adult cow, respectively.

~~Factors Affecting our~~ Results of Operations

~~Our operating results~~Comparison ~~are~~of ~~primarily~~years ~~affected~~ended byJune ~~the~~30, ~~following~~2016 ~~present~~and ~~factors:~~2015

·The following ~~Dairy~~table ~~Industry~~sets ~~Growth.~~forth Wecertain ~~believe~~information ~~the~~regarding ~~market~~our ~~for~~results ~~dairy~~of ~~products~~operations ~~in China~~ for the ~~long~~years ~~term~~ended ~~will~~June ~~grow rapidly~~30, ~~driven~~2016 ~~by China’s economic growth, improved living quality~~ and ~~increased penetration of infant formula~~2015. ~~Accordingly, we believe that the demand of fresh milk will increase rapidly.~~

· Production Capacity. Our revenue largely depends on our production capacity. The production capacity in this industry is determined by the variety, aging and number of adult cows. Accordingly, we acquired Yulong Cattle in November 2011 which increased our number of cows by 3,800 and improved our production capacity by approximately 90 tons per day when acquired.

	For the Years ended June 30,
							Change
	2016			2015			Amount			%
Revenue	$	101,091,303		$	66,335,166		$	34,756,137			52	%
Cost of goods sold		57,626,223			20,229,296			37,396,927			185	%
Gross profit		43,465,080			46,105,870			(2,640,790	)		(6	%)
Operating expenses		43,803,797			1,930,266			41,873,531			2,169	%
Operating income/(loss)		(338,717	)		44,175,604			(44,514,321	)		(101	%)
Other income and (expenses)		538,667			(259,539	)		798,206			(308	%)
Income before income taxes		199,950			43,916,065			(43,716,115	)		(100	%)
Provision for income taxes		2,403,996			10,968,816			(8,564,820	)		(78	%)
Net income before noncontrolling interests		(2,204,046	)		32,947,249			(35,151,295	)		(107	%)
Noncontrolling interests		16,641,448			355,982			16,285,455			4,575	%
Net income attributable to controlling interests	$	(18,845,494	)	$	32,591,267		$	(51,436,761	)		(158	%)

· Raw Material Supplies and Prices. The per unit cost of fresh milk is affected by price volatility of our raw materials and feeding expenses in the China markets. In response to the increased cost, we leased 16,666,750 square meters of grassland in October 2011 and 427,572 square meters grassland in February 2013. We believe that the hay production of this grassland can satisfy our raw material demand and lower our feeding cost.20

· Change of operation method. We disposed a large number of adult cows to local farmers, introduced distribution channel to them and receive up to 30% of the farmers’ milk sales as a commission. It makes our performance is stably increased and we have enough production resources to feed more cows by ourselves.Revenues

~~Sale~~Our revenue was primarily generated from sales of ~~Cows~~fresh milk and commissions on fresh milk sales by farmers to whom we sold cows. We had total revenues of $101,091,303 for the year ended June 30, 2016, an increase of $34,756,137 or 52%, compared to $66,335,166 for the year ended June 30, 2015. There are three main reasons caused such increase: 1). approximately $8,900,000 commission revenue generated from the total 6,709 milk cows disposed of by Yulong in November and December 2014 for the year ended June 30, 2016; 2). Total average milk cows were increased from 9,831 to 16,459; 3). The milk sales price was increased from $0.54 per kg to $0.59 per kg since November 2015 for approximate 72% of total milk sales.

~~In September 2011,~~The ~~August~~following ~~2011,~~table ~~and~~shows ~~June~~a ~~2011,~~breakdown ~~Xinhua Cattle sold 3,787, 5,635, and 2,000~~ of ~~its~~revenue ~~cows~~from tonatural ~~local~~milk ~~farmers,~~sales ~~respectively. In November~~ and ~~December~~sales ~~2014~~commission, ~~Yulong sold 3,714 and 2,995 cows to local farmers~~ respectively~~. 3,500 of the cows sold in 2014 were purchased from outside unrelated parties for $4,550,000. The remaining cows sold were raised by Yulong.~~:

According to the agreements signed with the local farmers in June 2011, the sales price will be collected over five years, with a minimum payment of 20% of the sales price to be paid each year. The related receivable is recorded at its present value at a discount rate of 12%, which is commensurate with interest rates for notes with similar risk. The Company also entered into agreements with these local farmers for a 30% commission of their monthly milk sales generated by the cows sold in exchange for the Company’s assistance in arranging for the sale of the milk.

	For the Years Ended June 30,
					Change
	2016		2015		Amount		%
Sales of natural milk	$	81,604,871	$	48,441,505	$	33,163,366		68	%
Sales commissions		19,486,432		17,893,661		1,592,771		9	%
Total revenue	$	101,091,303	$	66,335,166	$	34,756,137		52	%

~~Pursuant to~~ For the ~~agreements signed~~year inended ~~August~~June ~~2011~~30, ~~September 2011~~2016, ~~November~~our ~~2014,~~revenue ~~and~~generated ~~December~~from ~~2014,~~natural ~~the~~milk sales ~~price~~was ~~will be collected in monthly installments plus interest at 7% on the outstanding balance~~$81, ~~over the remaining useful lives of the cows~~604,871 which ~~range~~represented ~~from~~an ~~one~~increase toof ~~eight years.~~$33,163,366 ~~Local~~or ~~farmers~~68% ~~are~~compared ~~required~~ to ~~pay~~$48,441,505 ~~30%~~for ~~of monthly milk sales generated from~~ the ~~cows~~year ~~purchased~~ended byJune ~~the~~30, ~~farmers~~2015. The ~~30%~~increase ~~monthly payments are to be applied first to the monthly installment of principal for the cows sold and the balance as commission income for the Company’s assistance~~ in ~~arranging for~~ the ~~sale~~natural ~~of the~~ milk. ~~The~~sales ~~30%~~was ~~monthly~~primarily ~~payments~~due ~~will~~to ~~continue over~~ the ~~entire~~ ~~remaining~~increased ~~life~~number of ~~the~~milk cows ~~sold.~~compared ~~While the 30% rate and the amount applied~~ to ~~monthly installments for~~ the ~~purchase price of the cows remain the~~ same, ~~the~~period ~~amount~~ of ~~sales~~prior ~~commission income will vary depending on total monthly milk sales and the progress of repayments towards the purchase price~~year.

20The following table sets forth information regarding the number of milk cows and the revenue per cow:

Results of Operations

	For the Years Ended June 30,
					Change
	2016		2015		Amount		%
Sales of natural milk	$	81,604,871	$	48,441,505	$	33,163,366		68	%
Average number of milk cows		16,459		9,831		6,628		67	%
Revenue from per milk cow	$	4,958	$	4,927	$	31		1	%

~~Comparison of Fiscal Years Ended June 30, 2015 and 2014~~21

The ~~following~~revenue per ~~table~~milk cow increased to $4,958 for the year ended June 30, 2016 from $4,927 for the year ended June 30, 2015, ~~sets~~an ~~forth~~increase ~~certain~~of ~~information~~$31 ~~regarding~~or ~~our~~1%. ~~results~~Although the selling price of ~~operations~~fresh milk was increased from $0.54 per kg to $0.59 per kg since November 30, 2015 for approximate 72% of total milk sales, we terminated the ~~fiscal~~feeding ~~years~~agreements with the original 200 local farmers in Qiqihaer on September 25, 2015 and signed with 179 new farmers near to Harbin on September 29, 2015. The adult cows were transferred at the end of September 2015 and it slightly affected the daily production because of the traveling and new living conditions. That’s the reason caused only 1% increase in revenue per milk cow. In addition, the cold weather and increase in average age of milk cow slightly caused the decrease in production as well. The sales commissions from local farmers increased by $1,592,771 or 9% to $19,486,432 for the year ended June 30, 2016 from $17,893,661 for the year ended June 30, 2015. The average quantity of milk cows we now earn commission revenue increased by 7% or 1,033, to 16,517 for the year ended June 30, 2016 from 15,484 for the year ended June 30, 2015 due to an addition from the sale of 3,714 and 2,995 milk cows by Yulong in November and December 2014, respectively, and a deduction of 3,216 cows which had been fully depreciated from 13 farmers. The farmers started to pay the commission to Yulong since April 2015. In addition, the daily production of the cows sold by Yulong is also higher than the cows sold by Xinhua due to their younger age.

	For the years ended June 30,
						Change
	2015			2014		Amount			%
Revenue	$	66,335,166		$	58,753,254	$	7,581,912			13	%
Cost of goods sold		20,229,296			21,544,372		(1,315,076	)		(6	%)
Gross profit		46,105,870			37,208,882		8,896,988			24	%
Operating expenses		1,930,266			1,644,152		286,114			17	%
Operating income/(loss)		44,175,604			35,564,730		8,610,874			24	%
Other income and (expenses)		(259,539	)		687,953		(947,492	)		(138	%)
Income before income taxes		43,916,065			36,252,683		7,663,382			21	%
Provision for income taxes		10,968,816			9,446,671		1,522,145			16	%
Net income before noncontrolling interests		32,947,249			26,806,012		6,141,237			23	%
Noncontrolling interests		355,982			285,569		70,413			25	%
Net income attributable to controlling interests	$	32,591,267		$	26,520,443	$	6,070,824			23	%

Gross profit

~~Revenues~~Our cost of goods sold consists of feeding food, feeding expenses and other direct production overhead which includes labor costs, depreciation, lease, water & electricity, etc. Because we started to use the two new farms in Shuangcheng district and Xiangfang District in Harbin, more direct production overhead was allocated to our costs of goods sold. In addition, the direct feeding expenses and food costs paid to local farmers were increased from $115 per cow since March 2015 to $264 per cow in November 2015. In December 2015, Xinhua entered into agreements with 179 local farmers to pay them additional feeding cost of RMB 600 (US$93) for each young cow and adult cow, which were transferred to the farmers for raise at the beginning of October 2015, for improving the feeding environment. The company paid 50% of the total amount RMB 6,795,000 (approximate US$1,056,000) in December 2015 and the remaining 50% was paid in January 2016. Because all the young cows we paid for additional feeding cost were transferred to adult cows, all the additional feeding cost of approximate $1,056,000 was allocated to cost of goods sold. As a result, we have seen a decrease in our margins compared with the same period in 2015.

The revenue was primarily generated from sales of fresh milk and commissions on fresh milk sales by famers to whom we sold cows. We had total revenues of $66,335,166 for the fiscal year ended June 30, 2015, an increase of $7,581,912 or 13%, compared to $58,753,254 for the fiscal year ended June 30, 2014. Such increases were mainly driven by approximately $6 million commission revenue generated from the total 6,709 milk cows disposed by Yulong in November and December 2014.

	For the Year Ended June 30,
					Change
	2016		2015		Amount		%
Cost of goods sold	$	57,626,223	$	20,229,296	$	37,396,927		185	%
Average number of milk cows		16,459		9,831		6,628		67	%
Cost per milk cow	$	3,501	$	2,058	$	1,443		70	%

The cost ~~following~~per ~~table shows~~milk acow ~~breakdown~~increased to $3,501 for the year ended June 30, 2016 which represented an increase of ~~revenue~~$1,443 ~~from~~or ~~natural~~70% ~~milk~~compared to ~~sales~~$2,058 ~~and~~for ~~sales~~the ~~commission~~year ended June 30, ~~respectively:~~ 2015. We described the reason for the increase as above.

	For the fiscal years ended June 30,
					Change
	2015		2014		Amount		%
Sales of natural milk	$	48,441,505	$	46,577,224	$	1,864,281		4	%
Sales commissions		17,893,661		12,176,030		5,717,631		47	%
Total revenue	$	66,335,166	$	58,753,254	$	7,581,912		13	%

Gross profit margin

~~For~~Our ~~the~~gross ~~fiscal year~~profit ~~ended~~margin ~~June~~was ~~30,~~43.0% ~~2015,~~for ~~our~~the ~~revenue~~year ~~generated~~ended ~~from~~June ~~natural milk sales was $48~~30,~~441,505~~ 2016 which ~~represented~~decreased anby ~~increase of $1,864,281 or 4~~26.5% ~~compared~~from ~~to $46,577,224 for~~ the ~~fiscal~~ year ended June 30, ~~2014~~2015. The ~~increase~~main inreason ~~the~~for such ~~natural~~a ~~milk~~decrease ~~sales~~ was ~~directly~~mainly ~~related~~ due to the ~~increased~~increase ~~number~~in offeeding ~~milk~~and ~~cows~~food ~~compared~~cost toand ~~the~~directly ~~same~~production ~~period of 2014~~overhead.

~~The following table sets forth information regarding the number of milk cows and the revenue per cow:~~22

	For the fiscal years ended June 30,
					Change
	2015		2014		Amount		%
Sales of natural milk	$	48,441,505	$	46,577,224	$	1,864,281		4	%
Average number of milk cows		9,831		9,695		136		1	%
Revenue from per milk cow	$	4,927	$	4,804	$	123		3	%

Operating expenses

~~The revenue~~Our ~~per~~operating ~~milk~~expenses ~~cow~~sharply increased to $443,~~927~~ 803,797 for the ~~fiscal~~ year ended June 30, ~~2015~~2016 from $41,~~804~~ 930,226 for the ~~fiscal~~ year ended June 30, ~~2014~~ 2015, an increase of $~~123~~41,873,531 or 32,169%. ~~Such~~Our ~~increase~~operating ~~was~~expenses aprimarily ~~result~~consist of human resource costs, depreciation, professional fees associated with filings required by the ~~increase~~securities laws of the United States, consulting fees for a Chinese financial advisory company and business taxes, etc. We incurred total of $950,302 and $ 1,002,045 in ~~number~~business taxes and VAT for the year ended June 30, 2016 and 2015, respectively. We classified these business taxes and VAT as selling expenses. As we discussed above, we had been listed on ASX main board and were restructured since July 2015 and lose the interest of ~~young~~our ~~adult~~operating ~~cows~~company ~~with~~by ~~high~~40%. ~~daily~~We ~~production~~treated ~~comparing~~the reduce of our interest by 40% as a stock compensation to our shareholders and consultants for a total of $37,762,400 it was recorded under our G&A expenses. This is the ~~fiscal~~main reason that caused such sharp increase in our operating expenses. In addition, because our two new farms in Harbin were started to be used for the year ended June 30, ~~2014~~2016, ~~but~~the expenses, such as human costs, depreciation, lease and water & electricity, incurred for our sales and admin departments for these two farms were recorded as our operating expenses. That’s another reason caused the increase isin ~~slight~~our operating expenses for the year ended June 30, 2016 by comparing with the same period in 2015.

~~The sales commissions~~Operating ~~increased~~income from local farmers increased by $5,717,631 or 47% to $17,893,661 for the fiscal year ended June 30, 2015 from $12,176,030 for the fiscal year ended June 30, 2014. The quantity of milk cows we now earn commission revenue increased by 52% or 5,919 to 17,341 for the fiscal year ended June 30, 2015 from 11,422 for the fiscal year ended June 30, 2014 due to an addition from the sale of cows of 6,709 by Yulong in November and December 2014 and a deduction of 790 cows which had been fully depreciated from 3 farmers. The farmers started to pay the commission to Yulong in April 2015. In addition, the daily production of the cows sold by Yulong is also higher than the cows sold by Xinhua due to their younger age.(loss)

21As a result of the foregoing, we had operating loss of $338,717 for the year ended June 30, 2016, representing a decrease of $44,514,321, as compared to operating income of $44,175,604 for the year ended June 30, 2015.

~~Gross~~Non-operating income ~~profit~~(expenses)

~~Our~~For the ~~cost~~year ofended ~~goods sold~~June 30, 2016, non-operating income consists primarily of ~~feeding~~interest ~~food~~income of $588,822 ~~feeding~~earned ~~expenses~~on the outstanding notes receivable from the farmers and other ~~direct~~non-operating ~~production~~income ~~overhead~~of $174,802 which ~~includes~~mainly ~~labor~~consists ~~costs,~~of ~~depreciation,~~bank interest earned. Non-operating ~~lease,~~expenses ~~water~~consist &of ~~electricity,~~the ~~etc.~~loss ~~Upon~~on the ~~shift~~disposal of ~~milk~~immature ~~production~~ and ~~distribution~~mature ~~responsibilities~~biological ~~from~~assets usof to$224,957. ~~local~~For ~~farmers, our~~the ~~direct~~year ~~costs~~ended ~~have~~June ~~been~~30, 2015, ~~reduced~~non-operating asincome aconsists ~~result~~primarily of ~~lowered~~interest ~~feeding~~income ~~food~~of ~~costs~~$618,263 ~~due~~earned toon ~~lower~~the ~~quantity~~outstanding ofnotes ~~milk~~receivable ~~cows~~from the farmers and other non-operating income of $226,543 wewhich ~~have~~mainly ~~seen a~~consists ~~marked~~of ~~improvement~~bank ininterest ~~our~~earned. ~~margins~~Non-operating ~~compared~~expenses ~~with~~consist of the ~~past~~loss ~~two~~on ~~years~~the disposal of mature biological assets of $1,104,345.

	For the fiscal years ended June 30,
					Change
	2015		2014		Amount			%
Cost of goods sold	$	20,229,296	$	21,544,372	$	(1,315,076	)		(6	%)
Average number of milk cows		9,831		9,695		136			1	%
Cost per milk cow	$	2,058	$	2,222	$	(164	)		(7	%)

Net Income

~~The~~Xinhua Cattle ~~cost~~and ~~per~~Yulong ~~milk~~Cattle are entitled to a tax exemption for the full Enterprise Income Tax in China due to a government tax preference ~~cow~~policy ~~decreased~~for the dairy farming industry. Zhongxian Information is subject to an Enterprise Income Tax of 25% and files its own tax returns before January 16, 2015. On January 16, 2015, Zhongxian Information received a tax exemption notice from Harbin National Tax Bureau on its investment income from its subsidiaries. Jiasheng Consulting (the “WFOE”) is subject to an Enterprise Income Tax at 25% and files its own tax return before September 16, 2015. On September 16, 2015, Jiasheng Consulting purchased all of the registered equity of Zhongxian Information and the VIE structure was terminated. Under China tax law, Jiasheng Consulting is exempt from income tax on its investment income since September 16, 2015. The provision for income taxes was $2,~~058~~403,996 and $10,968,816 for the ~~fiscal~~years ~~year~~ended June 30, 2016 and 2015, respectively, primarily representing the enterprise income tax on the income of Zhongxian Information. Net income (loss) before noncontrolling interests was $(2,204,046) and $32,947,249 for the years ended June 30, 2016 and 2015, respectively, which represented a decrease ofin $~~164~~35,151,295 or 7107%. ~~compared~~Originally towe $2own 99% of Xinhua Cattle’s shares and our non-controlling interest is only 1% of Xinhua’s net income. On July 16,~~222~~ 2015, as we transferred ~~for~~100% of the ~~fiscal~~issued ~~year~~and ~~ended~~outstanding ~~June~~shares 30of Value Development to China Dairy, ~~2014~~which is 60% owned indirectly by us through our wholly owned subsidiary, Hope Diary. The ~~main~~effect ~~reason~~of ~~for~~this ~~the~~transaction ~~decrease~~ was ~~due~~ to reduce the ~~increase~~interest in ~~the~~our ~~cows~~operating ~~fed~~company by ~~local farmers~~40%. In addition, on April 8, 2016, our 60% owned subsidiary, China Dairy Corporation Limited issued 84,906,541 CDI shares at aAUD ~~lower~~$0.2 per ~~cost~~share on ASX and after the IPO, our ownership was diluted to 53.07%. As a result, net income attributed to the ~~cost~~non-controlling shareholders was increased from 1% to 46.93%. $16,641,448 and $355,982 was attributed to non-controlling interest for the years ended June 30, 2016 and 2015, respectively. Our net income (loss) attributable to the common stockholders of the Company was $(18,845,494) representing $(0.35) per ~~milk~~share ~~cow~~and ~~decreased~~$32,591,269 ~~accordingly~~representing $0.61 per share for the years ended June 30, 2016 and 2015, respectively.

~~Gross profit margin~~23

~~Our gross profit margin was 69.5% for the~~Foreign ~~fiscal~~Currency ~~year~~Translation ended June 30, 2015 which increased by 9.7% from the fiscal year ended June 30, 2014. The main reason for such an increase was mainly due to the disposal of adult cows by Yulong for which we now earn commissions and the decreased cost per milk cow.Adjustment

~~Operating~~Our reporting ~~expenses~~currency is the U.S. dollar. Our local currency, Renminbi, is our functional currency. All asset and liability accounts have been translated using the exchange rate in effect at the balance sheet date. Equity accounts have been translated at their historical exchange rates when the capital transactions occurred. Statements of income and other comprehensive income and cash flows have been translated using the average exchange rate for the periods presented. Adjustments resulting from the translation of our consolidated financial statements are recorded as other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. For the fiscal years ended June 30, 2016 and 2015, foreign currency translation adjustments of $(11,711,703) and $560,995, respectively, have been reported as other comprehensive income (loss) in the consolidated statements of income and other comprehensive income (loss), respectively.

~~Our operating expenses~~Liquidity increased to $1,930,266 for the fiscal year ended June 30, 2015 from $1,644,152 for the fiscal year ended June 30, 2014, an increase of $286,114 or 17%. Our operating expenses primarily consist of human resource costs, depreciation, professional fees associated with filings required by the securities laws of the United States, consulting fees for a Chinese financial advisory company and ~~tax~~ ~~surplus~~Capital ~~fund, etc. We incurred $1,002,045 and $ 679,343 in tax surplus fund for the fiscal year ended June 30, 2015 and 2014, respectively. We classified these tax surplus fund as selling expenses.~~Resources

~~Operating~~As of ~~income~~June 30, 2016 and 2015, we had no bank debt but amounts owed to shareholders of $1,672,707 and $937,524, respectively. The amounts due to our stockholders were principally for the professional fees incurred for being a reporting company in the United States and also will be in the Australian stock exchange from our stockholders’ personal bank accounts because of the restriction of official bank transfers abroad by the Bank of China. At the same time, we had $30,780,198 and $54,145,781 in cash at June 30, 2016 and 2015 as well as working capital of $55,157,784 and $64,685,249, respectively.

~~As a result of the~~Operating foregoing, we had operating income of $44,175,604 for the fiscal year ended June 30, 2015, representing an increase of $8,610,874, as compared to operating income of $35,564,730 for the fiscal year ended June 30, 2014.activities

~~Non-~~During the year ended June 30, 2016, our operating activities provided $26,179,444 in net cash, compared to $12,491,180 during the year ended June 30, 2015. The net cash provided in the year ended June 30, 2016 was significantly higher than our net income (~~expenses~~loss) primarily due to the increase in deferred income tax liabilities of $2,403,996, depreciation on fixed assets and biological properties of $4,828,085 and amortization on lease of $1,789,248 and the stock compensation for shareholders and consultants of $37,762,400. However, the increase in accounts receivable of $18,408,219 caused the decrease in cash. The net cash provided in the year ended June 30, 2015 was much less than the net income primarily due to the increase in the deferred income tax liabilities of $10,968,816 and prepayment for the lease of the two new farms of total $33,431,988.

~~For the fiscal~~Investing year ended June 30, 2015, non-operating income consists primarily of interest income of $618,263 earned on the outstanding notes receivable from the farmers and other non-operating income of $226,543 which mainly consists of bank interest earned. Non-operating expenses consists of the loss on the disposal of mature biological assets of $1,101,101 and the loss on the disposal of a motor vehicle of $3,244. For the fiscal year ended June 30, 2014, non-operating income consists primarily of interest income of $537,737 earned on the outstanding notes receivable from the farmers and other non-operating income of $149,185 and $1,031 which mainly consists of bank interest earned and the gain on disposal of biological assets, respectively.activities

~~Net~~During ~~Income~~the year ended June 30, 2016, our investing activities provided a cash outflow of $58,678,207 compared with a cash outflow of $17,186,113 for the year ended June 30, 2015. The food costs and feeding expenses for biological properties used cash of $18,090,592 and $10,741,615 for the years ended June 30, 2016 and 2015, respectively. For the years ended June 30, 2016 and 2015, we spent $15,623,459 and $4,555,600, respectively, for purchasing milk cows. Conversely, we received cash of $2,090,254 and $1,875,642 during the years ended June 30, 2016 and 2015, respectively, from the collection of notes receivable from the disposal of biological properties in 2011 and 2014. For the years ended June 30, 2016 and 2015, we also received $955,494 and $19,524 in cash from our disposal of biological properties, respectively. For the years ended June 30, 2016 and 2015, we spent $28,009,904 and $3,784,064, respectively, for the addition of PP&E for daily operations. The material additions during the year ended June 30, 2016 were the production facilities, office buildings, cow-houses, and forage storage built and refurbished on the new land, which mostly were completed and in service before June 30, 2016.

Xinhua Cattle and Yulong Cattle are entitled to a tax exemption for the full Enterprise Income Tax in China due to a government tax preference policy for the dairy farming industry. Zhongxian Information is subject to an Enterprise Income Tax of 25% and files its own tax returns before January 16, 2015. On January 16, 2015, Zhongxian Information received a tax exemption notice from Harbin National Tax Bureau on its investment income from its subsidiaries. Jiasheng Consulting (the “WFOE”) is subject to an Enterprise Income Tax at 25% and files its own tax return. The provision for income taxes was $10,968,816 and $9,446,671 for the fiscal years ended June 30, 2015 and 2014, respectively, primarily representing the enterprise income tax on the income of Zhongxian Information. Net income before non-controlling interests was $32,947,249 and $26,806,012 for the fiscal years ended June 30, 2015 and 2014, respectively, which represented an increase in $6,141,237 or 23%. As we own 99% of Xinhua Cattle’s shares, net income attributed to the non-controlling shareholders was $355,982 and $285,569 for the fiscal years ended June 30, 2015 and 2014, respectively. Our net income attributable to the common stockholders of the Company was $32,591,267 representing $0.61 per share and $26,520,443 representing $0.50 per share for the fiscal years ended June 30, 2015 and 2014, respectively.24

22Financing activities

~~Foreign~~Our financing ~~Currency~~activities mainly included proceeds from shareholders and repayment to shareholders for the year ended June 30, ~~Translation~~2015. ~~Adjustment~~For the years ended June 30, 2016 and 2015, we received $0 and $193,182 from shareholders, respectively. For the years ended June 30, 2016 and 2015, we repaid $0 and $99,316 to our shareholders, respectively. For the year ended June 30, 2016, our 53.07% owned subsidiary, China Dairy Corporation Limited issued 84,906,541 CDI shares at AUD $0.2 per share on ASX and raised a total net fund of $12,553,267.

~~Our reporting currency~~We ishave ~~the~~historically ~~U.S.~~financed ~~dollar.~~our ~~Our~~operations ~~local~~through ~~currency,~~cash ~~Renminbi,~~generated isfrom our ~~functional~~fresh ~~currency.~~milk ~~All~~sales ~~asset~~ and ~~liability~~commissions ~~accounts~~from ~~have~~milk ~~been~~sales ~~translated~~from ~~using~~local ~~the~~farmers. ~~exchange~~Over ~~rate in effect at~~ the ~~balance~~long ~~sheet~~term, ~~date. Equity~~it ~~accounts~~is ~~have~~our ~~been~~expectation ~~translated~~to atutilize ~~their~~our ~~historical exchange~~additional ~~rates when the~~ capital ~~transactions~~resources ~~occurred. Statements~~to ofexpand ~~income~~our ~~and~~operating ~~other comprehensive income~~activities. At ~~and~~the ~~cash~~present ~~flows~~time, ~~have~~however, ~~been~~we ~~translated~~are ~~using~~able ~~the~~to ~~average~~operate ~~exchange~~profitably ~~rate~~without ~~for~~any ~~the~~significant ~~periods~~additional ~~presented~~investment. ~~Adjustments~~ Moreover, ~~resulting~~our ~~from~~observation ~~the translation~~ of ~~our~~the ~~consolidated~~equity ~~financial~~markets ~~statements~~indicates ~~are~~that ~~recorded~~we aswould ~~other~~be ~~comprehensive~~unlikely ~~income~~to ~~(loss). Transaction gains~~obtain ~~and~~financing, ~~losses~~or ~~that~~if ~~arise~~available, ~~from exchange rate fluctuations~~ on ~~transactions~~favorable ~~denominated in a currency other than the functional~~terms ~~currency~~at ~~are~~this ~~included in the results of operations as incurred~~time. ~~For~~Accordingly, ~~the~~our ~~fiscal~~near-term ~~years~~plan ~~ended~~is ~~June~~to ~~30,~~finance ~~2015~~our ~~and~~operations ~~2014,~~with ~~foreign~~our ~~currency translation~~current ~~adjustments~~working ofcapital ~~$560,995~~ and ~~$874,250,~~with ~~respectively, have been reported as other comprehensive income in~~ the ~~consolidated~~expected ~~statements of~~ income ~~and~~from ~~other~~our ~~comprehensive~~ongoing ~~income, respectively~~operations.

~~Liquidity~~Critical Accounting Policies and ~~Capital~~ ~~Resources~~Estimates

~~As of June 30, 2015~~Basis ~~and June 30, 2014, we had no bank debt but amounts owed to shareholders~~ of ~~$937,524~~Accounting and $656,995, respectively. The amounts due to our stockholders was principally for the professional fees incurred for being a reporting company in the United States from our stockholders’ personal bank accounts because of the restriction of official bank transfers abroad by the Bank of China. At the same time, we had $54,145,781 and $58,032,554 in cash at June 30, 2015 and 2014 as well as working capital of $64,685,249 and $65,364,104, respectively.Presentation

~~Operating~~The consolidated ~~activities~~financial statements of the Company as of June 30, 2016 and 2015 for the years ended June 30, 2016 and 2015 have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC.

~~During the fiscal~~Revenue ~~year ended June 30, 2015, our operating activities provided $12,491,180 in net cash, compared to $38,093,140 during the fiscal year ended June 30, 2014.~~Recognition The net cash provided in the fiscal year ended June 30, 2015 was significantly lower than our net income primarily due to the increase in deferred income tax liabilities of $10,968,816 and the increase in lease payment of $33,431,988. The net cash provided in the fiscal year ended June 30, 2014 was much more than the net income primarily due to the increase in the deferred income tax liabilities of $9,446,671.

~~Investing~~The Company’s ~~activities~~primary sources of revenues are derived from (a) sale of fresh milk to Chinese manufacturing and distribution companies of dairy products and (b) commissions from local farmers on their monthly milk sales. The Company’s revenue recognition policies comply with SEC Staff Accounting Bulletin (“SAB”) 104. Revenues from the sale of milk are recognized when the milk is delivered and the title is transferred, the risks and rewards of ownership have been transferred to the customer, the price is fixed and determinable and collection of the related receivable is reasonably assured.

~~During~~Milk sales ~~the~~revenue ~~fiscal year~~is ~~ended~~recognized ~~June~~when ~~30,~~the ~~2015,~~title ~~our~~to ~~investing~~the ~~activities~~goods ~~provided~~has abeen ~~cash~~passed ~~outflow~~to ofour ~~$17~~customers,~~186,113~~ ~~compared~~which ~~with~~is athe ~~cash~~date ~~outflow~~when ~~of $6,268,810 for~~ the ~~fiscal~~goods ~~year~~are delivered ~~ended~~to ~~June~~designated ~~30,~~locations ~~2014. The food costs~~ and ~~feeding~~accepted ~~expenses~~by ~~for biological properties used cash of $10,741,615 and $8,156,871 for~~ the ~~fiscal~~customers ~~years ended June 30, 2015~~ and ~~2014, respectively. For~~ the ~~fiscal~~previously ~~year~~discussed ~~ended~~requirements ~~June~~are ~~30, 2015, we spent~~met. Fresh ~~$4,555,600 for purchasing~~ milk ~~cows.~~is ~~Conversely,~~delivered weto ~~received~~our ~~cash~~customers ofon ~~$1,875,642~~a ~~and~~daily ~~$1,869,595~~basis. The ~~during~~customers’ ~~the~~acceptance ~~fiscal~~occurs ~~years~~upon ~~ended~~inspection ~~June 30,~~of ~~2015~~ quality and ~~2014,~~measurement ~~respectively, from collection~~ of ~~notes~~quantity ~~receivable~~at ~~from~~ the ~~disposal~~time of ~~biological~~delivery. The ~~properties~~Company indoes ~~2011~~not ~~and~~provide ~~2014. For~~ the ~~fiscal~~customer ~~years~~with ~~ended~~the ~~June~~right ~~30,~~of ~~2015~~return. Sales commission ~~and~~revenue ~~2014,~~is werecognized ~~also~~on ~~received~~a ~~$19,524~~monthly ~~and~~basis ~~$18,466~~based inon ~~cash~~monthly ~~from our~~ sales ofreports ~~biological~~received ~~properties, respectively.~~from ~~For~~ the ~~fiscal~~dairy ~~year ended June 30, 2015, we also spent $3,784,064 for addition of property, plant and equipment for daily operations~~companies.

~~Financing activities~~Estimates

~~Our~~The preparation ~~financing~~of ~~activities mainly~~financial ~~included~~statements ~~proceeds~~in ~~from~~conformity ~~shareholders~~with ~~and~~accounting ~~repayment~~principles togenerally ~~shareholders.~~accepted ~~For~~in the ~~fiscal~~United ~~years~~States ~~ended~~of ~~June~~America requires ~~30,~~management ~~2015~~to make estimates and ~~2014,~~assumptions ~~we received~~that ~~$193,182~~affect certain reported amounts of assets and ~~$270,431~~liabilities ~~from~~and ~~shareholders,~~disclosures of ~~respectively.~~contingent ~~For~~assets ~~the~~and ~~fiscal~~liabilities ~~years~~at ~~ended~~the ~~June~~date ~~30,~~of ~~2015~~the financial statements and ~~2014,~~the wereported ~~repaid~~amounts of ~~$99,316~~ revenues and ~~$1,161~~expenses during tothe ~~our~~reporting ~~shareholders,~~periods. Actual ~~respectively~~results could differ from those estimates.

~~We have historically~~Off-Balance ~~financed~~Sheet our operations through cash generated from our fresh milk sales and commissions from milk sales from local farmers. Over the long term, it is our expectation to utilize our additional capital resources to expand our operating activities. At the present time, however, we are able to operate profitably without any significant additional investment. Moreover, there is no guarantee and our observation of the equity markets does not indicate that we will be able to obtain financing, or if available, on favorable terms at this time. Accordingly, our near term plan is to finance our operations with our current working capital and with the expected income from our ongoing operations.Arrangements

~~Critical~~We do ~~Accounting~~not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial ~~Policies~~condition ~~and~~or ~~Estimates~~results of operations.

~~Basis~~Item 7A. ofQuantitative ~~Accounting~~ and ~~Presentation~~Qualitative Disclosures About Market Risk.

~~The consolidated financial statements of the~~Smaller ~~Company~~reporting ascompanies ofare ~~June~~not ~~30,~~required ~~2015~~to ~~and~~provide ~~2014 and for~~ the ~~fiscal~~information ~~years~~required ~~ended~~by ~~June~~this ~~30, 2015 and 2014, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC~~item.

2325

~~Revenue~~Item 8. ~~Recognition~~Financial Statements and Supplementary Data.

~~The Company’s~~CHINA ~~primary~~MODERN ~~sources~~AGRICULTURAL ofINFORMATION, ~~revenues are derived from (a) sale of fresh milk to Chinese manufacturing and distribution companies of dairy products and (b) commissions from local farmers on their monthly milk sales~~INC. ~~The~~ ~~Company’s revenue recognition~~AND policies comply with SEC Staff Accounting Bulletin (“SAB”) 104. Revenues from the sale of milk are recognized when the milk is delivered and the title is transferred, the risks and rewards of ownership have been transferred to the customer, the price is fixed and determinable and collection of the related receivable is reasonably assured.SUBSIDIARIES

~~Milk sales revenue~~CONSOLIDATED isFINANCIAL recognized when the title to the goods has been passed to our customers, which is the date when the goods are delivered to designated locations and accepted by the customers and the previously discussed requirements are met. Fresh milk is delivered to our customers on a daily basis. The customers’ acceptance occurs upon inspection of quality and measurement of quantity at the time of delivery. The Company does not provide the customer with the right of return. Sales commission revenue is recognized on a monthly basis based on monthly sales reports received from the dairy companies.STATEMENTS

~~Estimates~~FOR THE FISCAL YEARS ENDED MAY 31, 2016 AND 2015

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

CONTENTS	PAGE

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	F-1

CONSOLIDATED FINANCIAL STATEMENTS:

Consolidated Balance Sheets	F-2

Consolidated Statements of Income and Comprehensive Income	F-4

Consolidated Statements of Changes in Stockholders' Equity	F-6

Consolidated Statements of Cash Flows	F-8

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	F-10

~~Off-Balance Sheet Arrangements~~26

~~We do not have any~~REPORT ~~off-balance~~OF ~~sheet~~INDEPENDENT ~~arrangements~~REGISTERED ~~that~~PUBLIC ~~have~~ACCOUNTING ~~or are reasonably likely to have a current or future effect on our financial condition or results of operations.~~FIRM

~~Item~~To the ~~7A.~~Board ~~Quantitative~~of ~~and~~Directors ~~Qualitative Disclosures About Market Risk.~~and

~~Smaller~~Stockholders of ~~reporting~~China ~~companies~~Modern ~~are~~Agricultural ~~not~~Information, ~~required~~Inc. toand ~~provide the information required by this item.~~Subsidiaries

~~Item~~We have 8audited the accompanying consolidated balance sheets of China Modern Agricultural Information, Inc. ~~Financial~~and ~~Statements~~Subsidiaries (the “Company”) as of June 30, 2016 and ~~Supplementary~~2015 ~~Data~~and the related consolidated statements of income and comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the two year period ended June 30, 2016. China Modern Agricultural Information, Inc. and Subsidiaries’ management is responsible for these consolidated financial statements. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

24We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

~~China~~In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of China Modern Agricultural Information, Inc. and Subsidiaries as of June 30, 2016 and 2015, and the consolidated results of their operations and their cash flows for each of the years in two year period ended June 31, 2016, in conformity with accounting principles generally accepted in the United States of America.

~~Information~~/s/ Wei, ~~Inc~~Wei & Co., ~~and~~LLP Wei, Wei, & Co., LLP Flushing, New York September 29, 2016

~~subsidiaries~~F-1

~~Consolidated~~China Modern ~~Financial~~Agricultural ~~Statements~~Information, ~~for the~~Inc.

~~Fiscal Years Ended June 30, 2015~~ and ~~2014~~ subsidiaries

~~And~~CONSOLIDATED BALANCE SHEETS

~~Report~~june 30, of2016 ~~Independent~~AND ~~Registered~~2015 ~~Public Accounting~~(IN ~~Firm~~U.S. $)

China Modern Agricultural Information, Inc.

ASSETS	June 30, 2016		June 30, 2015

Current assets
Cash	$	30,780,198	$	54,145,781
Accounts receivable		24,783,720		7,490,501
Inventories		1,122,843		759,628
Prepaid expenses		1,216,963		898,905
Interest receivable		474,803		182,422
Notes receivable, current portion		2,097,363		2,739,302

Total current assets		60,475,890		66,216,539

Property, plant and equipment, net		34,327,757		6,950,302

Other assets
Notes receivable		4,943,622		7,092,206
Prepaid leases		45,483,513		54,257,040
Biological assets, net		64,136,851		38,603,586

Total other assets		114,563,986		99,952,832

TOTAL ASSETS	$	209,367,633	$	173,119,673

~~and~~See ~~subsidiaries~~accompanying notes to the consolidated financial statements.

~~CONSOLIDATED FINANCIAL STATEMENTS~~F-2

~~FOR~~China ~~THE~~Modern ~~FISCAL~~Agricultural ~~YEARS ended June 30~~Information, ~~2015~~Inc. ~~and 2014~~

CONTENTS		PAGE
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		F-1
CONSOLIDATED FINANCIAL STATEMENTS:
Consolidated Balance Sheets		F-2
Consolidated Statements of Income and Other Comprehensive Income		F-4
Consolidated Statements of Changes in Stockholders’ Equity		F-6
Consolidated Statements of Cash Flows		F-7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS		F-9

and subsidiaries

~~REPORT~~CONSOLIDATED OFBALANCE ~~INDEPENDENT~~SHEETS ~~REGISTERED PUBLIC ACCOUNTING FIRM~~ (CONTINUED)

ToJUNE 30, ~~the~~2016 ~~Board~~AND of2015 ~~Directors~~(IN ~~and~~U.S. ~~Stockholders~~$)

China Modern Agricultural Information, Inc. and Subsidiaries

LIABILITIES AND stockholders’ EQUITY	June 30, 2016			June 30, 2015

Current liabilities
Accrued expenses and other payables	$	528,430			593,766
Dividend payable		3,116,969			-
Stockholder loans		1,672,707			937,524

Total current liabilities		5,318,106			1,531,290

Deferred income taxes		40,876,903			41,806,633

Total liabilities		46,195,009			43,337,923

Commitments and contingencies

Stockholders’ equity
Common stock, $0.001 par value; 75,000,000 shares authorized; 53,100,000 shares issued and outstanding		53,100			53,100
Additional paid-in capital		49,709,237			5,851,170
Retained earnings		39,401,937			117,035,653
Statutory reserve fund		420,406			792,174
Other comprehensive (loss) income		(6,938,823	)		4,772,880

Sub-total		82,645,857			128,504,977

Noncontrolling interests		80,526,767			1,276,773

Total stockholders’ equity		163,172,624			129,781,750

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	209,367,633		$	173,119,673

WeSee ~~have audited the~~ accompanying ~~consolidated~~ ~~balance~~notes ~~sheets~~to ~~of China Modern Agricultural Information, Inc. and Subsidiaries (~~the ~~“Company”) as of June 30, 2015 and 2014, and the related~~ consolidated statements of income and other comprehensive income, changes in stockholders’ equity and cash flows for each of the years in the two-year period ended June 30, 2015. China Modern Agricultural Information, Inc.’s management is responsible for these consolidated financial statements. ~~Our responsibility is to express an opinion on these consolidated financial statements based on our audits.~~

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.F-3

~~In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of~~ China Modern Agricultural Information, Inc. and Subsidiaries as of June 30, 2015 and 2014, and the consolidated results of their operations and their cash flows for each of the years in the two-year period ended June 30, 2015, in conformity with accounting principles generally accepted in the United States of America.

~~/s/ Wei, Wei & Co., LLP~~and subsidiaries

~~Flushing,~~CONSOLIDATED STATEMENTS ~~New~~OF ~~York~~INCOME

~~October~~AND ~~13,~~OTHER COMPREHENSIVE ~~2015~~INCOME (LOSS)

~~F-1~~FOR THE YEARS ENDED jUNE 30, 2016 and 2015 (IN U.S. $)

China Modern Agricultural Information, Inc.

	2016			2015

Revenues
Milk sales	$	81,604,871		$	48,441,505
Sales commission		19,486,432			17,893,661

Total revenues		101,091,303			66,335,166
Cost of goods sold		(57,626,223	)		(20,229,296	)

Gross profit		43,465,080			46,105,870

Operating expenses
R&D expenses		306,616			-
Selling and marketing		1,889,864			1,146,798
General and administrative		41,607,317			783,468

Total operating expenses		43,803,797			1,930,266

Operating income (loss)		(338,717	)		44,175,604

Other income and (expenses)
Interest income on notes receivable		588,822			618,263
Gain (loss) on disposal of properties		-			(1,104,345	)
Non-operating expense		(224,957	)
Other non-operating income		174,802			226,543

Total other income (expenses)		538,667			(259,539	)

Income before provision for income taxes		199,950			43,916,065
Provision for income taxes		2,403,996			10,968,816

~~and~~See accompanying notes to the consolidated ~~subsidiaries~~financial statements.

~~CONSOLIDATED BALANCE SHEETS~~F-4

~~junE~~China ~~30,~~Modern ~~2015~~Agricultural ~~and~~Information, ~~2014 (IN U~~Inc.S. $)

ASSETS	2015		2014
Current assets
Cash	$	54,145,781	$	58,032,554
Accounts receivable		7,490,501		5,341,891
Inventories		759,628		675,542
Prepaid expenses		898,905		2,902
Interest receivable		182,422		424,409
Notes receivable, current portion		2,739,302		1,863,092
Total current assets		66,216,539		66,340,390
Property, plant and equipment, net		6,950,302		3,485,907
Other assets
Notes receivable		7,092,206		4,130,448
Prepaid leases		54,257,040		21,657,762
Biological assets, net		38,603,586		32,288,393
Total other assets		99,952,832		58,076,603
TOTAL ASSETS	$	173,119,673	$	127,902,900

and subsidiaries

~~See~~CONSOLIDATED STATEMENTS ~~accompanying~~OF ~~notes~~INCOME ~~to the consolidated financial statements.~~

~~F-2~~AND OTHER COMPREHENSIVE (LOSS) INCOME (CONTINUED)

~~China~~FOR ~~Modern~~THE ~~Agricultural~~YEARS ~~Information~~ENDED jUNE 30, ~~Inc~~2016 and 2015 (IN U.S. $)

and subsidiaries

	2016			2015

Net (loss) income before noncontrolling interests		(2,204,046	)		32,947,249
Noncontrolling interests		(16,641,448	)		(355,982	)

Net (loss) income attributable to common stockholders		(18,845,494	)		32,591,267

Other comprehensive income
Foreign currency translation adjustment		(11,711,703	)		560,995

Total comprehensive (loss) income	$	(30,557,197	)	$	33,152,262

Earnings (losses) per common share, basic and diluted	$	(0.35	)	$	0.61

Weighted-average shares outstanding, basic and diluted		53,100,000			53,100,000

~~CONSOLIDATED~~See accompanying notes to the consolidated ~~BALANCE~~financial ~~SHEETS~~statements. ~~(CONTINUED)~~

~~june 30, 2015 AND 2014 (IN U.S. $)~~F-5

LIABILITIES AND stockholders’ EQUITY	2015		2014
Current liabilities
Accrued expenses and other payables	$	593,766	$	319,291
Stockholder loans		937,524		656,995
Total current liabilities		1,531,290		976,286
Deferred income taxes		41,806,633		30,653,108
Total liabilities		43,337,923		31,629,394
Commitments and contingencies
Stockholders’ equity
Common stock, $0.001 par value; 75,000,000 shares authorized; 53,100,000 shares issued and outstanding		53,100		53,100
Additional paid-in capital		5,851,170		5,851,170
Retained earnings		117,035,653		84,444,386
Statutory reserve fund		792,174		792,174
Other comprehensive income		4,772,880		4,211,885
Sub-total		128,504,977		95,352,715
Noncontrolling interests		1,276,773		920,791
Total stockholders’ equity		129,781,750		96,273,506
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	173,119,673	$	127,902,900

China Modern Agricultural Information, Inc.

~~See accompanying notes to the consolidated~~and ~~financial statements.~~ subsidiaries

~~F-3~~CONSOLIDATED STATEMENTS OF changes in Stockholders’ EQUITY

~~China~~FOR ~~Modern~~THE ~~Agricultural~~YEARS ~~Information~~ENDED JUNE 30, ~~Inc~~2016 (IN U.S. $)

and subsidiaries

	Common Stock		Additional Paid-in Capital		Retained Earnings		Statutory Reserve Fund		Noncontrolling Interests		Other Comprehensive Income		Total

Balance, June 30, 2014	$	53,100	$	5,851,170	$	84,444,386	$	792,174	$	920,791	$	4,211,885	$	96,273,506

Net income		-		-		32,591,267		-		355,982		-		32,947,249
Other comprehensive income		-		-		-		-		-		560,995		560,995

Balance June 30, 2015	$	53,100	$	5,851,170	$	117,035,653	$	792,174	$	1,276,773	$	4,772,880	$	129,781,750

~~CONSOLIDATED~~See ~~STATEMENTS~~accompanying OFnotes ~~INCOME~~to the consolidated financial statements.

~~AND OTHER COMPREHENSIVE INCOME~~ F-6

~~FOR~~China ~~THE~~Modern ~~FISCAL~~Agricultural ~~YEARS ENDED june 30~~Information, ~~2015 and 2014 (IN U~~Inc.S. $)

	2015			2014
Revenues
Milk sales	$	48,441,505		$	46,577,224
Sales commission		17,893,661			12,176,030
Total revenues		66,335,166			58,753,254
Cost of goods sold		(20,229,296	)		(21,544,372	)
Gross profit		46,105,870			37,208,882
Operating expenses
Selling and marketing		1,146,798			764,176
General and administrative		783,468			879,976
Total operating expenses		1,930,266			1,644,152
Operating income		44,175,604			35,564,730
Other income and expenses
Interest income on notes receivable		618,263			537,737
Gain (loss) on disposal of properties		(1,104,345	)		1,031
Other non-operating income		226,543			149,185
Total other income (expenses)		(259,539	)		687,953
Income before provision for income taxes		43,916,065			36,252,683
Provision for income taxes		10,968,816			9,446,671

and subsidiaries

~~See~~CONSOLIDATED STATEMENTS ~~accompanying~~OF ~~notes~~changes toin ~~the~~Stockholders’ EQUITY ~~consolidated financial statements.~~(CONTINUED)

~~F-4~~FOR THE YEARS ENDED JUNE 30, 2016 (IN U.S. $)

China Modern Agricultural Information, Inc.

	Common Stock		Additional Paid-in Capital			Retained Earnings			Statutory Reserve Fund			Noncontrolling Interests		Other Comprehensive Income			Total

Balance June 30, 2015	$	53,100	$	5,851,170		$	117,035,653		$	792,174		$	1,276,773	$	4,772,880		$	129,781,750

Stock compensation		-		37,762,400			-			-			-		-			37,762,400
Net (loss) income		-		-			(18,845,494	)		-			16,641,448		-			(2,204,046	)
Dividend declared		-		-			(3,009,044	)		-			-		-			(3,009,044	)
Reclassification for issuance of subsidiary stock for compensation		-		(482,720	)		(47,542,449	)		(316,870	)		48,342,039		-			-
Increase and reclassification in equity attributable to the sale of subsidiary stock				6,578,387			(8,236,729	)		(54,898	)		14,266,507					12,553,267
Other comprehensive income		-		-			-			-			-		(11,711,703	)		(11,711,703	)

Balance June 30, 2016	$	53,100	$	49,709,237		$	39,401,937		$	420,406		$	80,526,767	$	(6,938,823	)	$	163,172,624

~~and~~See accompanying notes to the consolidated ~~subsidiaries~~financial statements.

~~CONSOLIDATED STATEMENTS OF INCOME~~ F-7

~~AND~~China Modern ~~OTHER~~Agricultural ~~COMPREHENSIVE~~Information, ~~INCOME~~Inc. ~~(CONTINUED)~~

~~FOR THE FISCAL YEARS ENDED JUNE 30, 2015~~ and ~~2014 (IN U.S. $)~~ subsidiaries

	2015			2014
Net income before noncontrolling interests		32,947,249			26,806,012
Noncontrolling interests		(355,982	)		(285,569	)
Net income attributable to common stockholders		32,591,267			26,520,443
Other comprehensive income
Foreign currency translation adjustment		560,995			874,250
Total comprehensive income	$	33,152,262		$	27,394,693
Earnings per common share, basic and diluted	$	0.61		$	0.50
Weighted average shares outstanding, basic and diluted		53,100,000			53,100,000

CONSOLIDATED STATEMENTS OF CASH FLOWS

~~See~~FOR THE ~~accompanying~~YEARS ~~notes~~ENDED toJUNE 30, ~~the~~2016 ~~consolidated~~AND ~~financial~~2015 ~~statements~~(IN U. S. $)

F-5

	2016			2015

Cash flows from operating activities
Net (loss) income	$	(2,204,046	)	$	32,947,249
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation		4,828,085			2,300,574
Amortization for prepaid land lease		1,789,248			1,029,601
Deferred income taxes		2,403,996			10,968,816
Loss from disposal biological assets		215,997			1,102,921
Loss from disposal from property, plant and equipment		-			3,244
Stock compensation for shareholder and consultants		37,762,400			-
Change in operating assets and liabilities
(Increase) in accounts receivable		(18,408,219	)		(2,148,610	)
(Increase) in inventories		(436,162	)		(84,086	)
(Increase) in prepayment		(179,941	)		(896,003	)
(Increase) in payment for lease		-			(33,431,988	)
(Increase) decrease in interest receivable		(316,576	)		241,987
Increase in accrued expenses and other payables		724,662			457,475

Net cash provided by operating activities		26,179,444			12,491,180

Cash flows from investing activities
Collection of notes receivable		2,090,254			1,875,642
Proceeds from sales of biological assets		955,494			19,524
Purchase of property, plant and equipment		(28,009,904	)		(3,784,064	)
(Increase) in biological assets		(18,090,592	)		(10,741,615	)
Purchase of biological property		(15,623,459	)		(4,555,600	)

Net cash (used in) investing activities		(58,678,207	)		(17,186,113	)

Cash flows from financing activities
Proceeds from sales of common stock by subsidiary		12,553,267			-
Proceeds from stockholder loans		-			193,182
Repayment of stockholder loans		-			(99,316	)

Net cash provided by financing activities		12,553,267			93,866

~~China~~See ~~Modern Agricultural~~accompanying ~~Information,~~notes ~~Inc.~~to the consolidated financial statements.

~~and subsidiaries~~F-8

~~CONSOLIDATED STATEMENTS OF changes~~China inModern ~~Stockholders’~~Agricultural ~~EQUITY~~Information, Inc.

~~FOR THE~~and ~~FISCAL YEARs ENDED JUNE 30, 2015 (IN U.S. $)~~subsidiaries

	Common Stock		Additional Paid-in Capital		Retained Earnings		Statutory Reserve Fund		Noncontrolling Interests		Other Comprehensive Income		Total
Balance, June 30, 2013		53,100		5,851,170		57,923,943		792,174		635,222		3,337,635		68,593,244
Net income		-		-		26,520,443		-		285,569		-		26,806,012
Other comprehensive income		-		-		-		-		-		874,250		874,250
Balance, June 30, 2014	$	53,100	$	5,851,170	$	84,444,386	$	792,174	$	920,791	$	4,211,885	$	96,273,506
Net income		-		-		32,591,267		-		355,982		-		32,947,249
Other comprehensive income		-		-		-		-		-		560,995		560,995
Balance, June 30, 2015	$	53,100	$	5,851,170	$	117,035,653	$	792,174	$	1,276,773	$	4,772,880	$	129,781,750

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

~~See~~FOR THE ~~accompanying~~years ~~notes~~ENDED toJUNE 30, ~~the~~2016 ~~consolidated~~AND ~~financial~~2015 ~~statements~~(IN U.S. $)

F-6

	2016			2015

Effect of exchange rate changes on cash		(3,420,087	)		714,294

Net (decrease) in cash		(23,365,583	)		(3,886,773	)
Cash, beginning of year		54,145,781			58,032,554

Cash, end of year	$	30,780,198		$	54,145,781

Supplemental disclosure of cash flow information:

Cash paid for income taxes	$	-		$	-

Cash paid for interest	$	-		$	-

Supplemental disclosure of non-cash activities:

Payment of accrued expenses by shareholder	$	789,998		$	138,000

Construction in process transferred from prepayment	$	2,683,232		$	-

Construction in process not paid	$	84,837		$	-

Dividend declared not paid	$	3,050,615		$	-

~~China~~See ~~Modern Agricultural~~accompanying ~~Information,~~notes ~~Inc.~~to the consolidated financial statements.

~~and subsidiaries~~F-9

~~CONSOLIDATED~~China Modern ~~STATEMENTS~~Agricultural OFInformation, ~~CASH~~Inc. ~~FLOWS~~

~~FOR THE~~and ~~FISCAL YEARS ENDED june 30, 2015 AND 2014 (IN U.S. $)~~subsidiaries

	2015			2014
Cash flows from operating activities
Net income	$	32,947,249		$	26,806,012
Adjustment to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		2,300,574			2,246,542
Amortization for prepaid land lease		1,029,601			748,304
Deferred income taxes		10,968,816			9,446,671
Loss (gain) from disposal from biological assets		1,102,921			(1,031	)
Loss from disposal from Property, plant and equipment		3,244			-
(Increase) in accounts receivable		(2,148,610	)		(901,561	)
(Increase) in inventories		(84,086	)		(403,728	)
(Increase) decrease in prepaid expenses		(896,003	)		322,080
(Increase) in payment for lease		(33,431,988	)		-
Decrease (increase) in interest receivable		241,987			(171,751	)
Increase in accrued expenses and other payables		457,475			1,602
Net cash provided by operating activities		12,491,180			38,093,140
Cash flows from investing activities
Collection of notes receivable		1,875,642			1,869,595
Proceeds from sales of biological assets		19,524			18,466
Purchase of property, plant and equipment		(3,784,064	)		-
(Increase) in biological assets		(10,741,615	)		(8,156,871	)
Purchase of biological assets		(4,555,600	)		-
Net cash (used in) investing activities		(17,186,113	)		(6,268,810	)
Cash flows from financing activities
Proceeds from stockholder loans		193,182			270,431
Repayment of stockholder loans		(99,316	)		(1,161	)
Net cash provided by financing activities		93,866			269,270

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

~~See~~FOR THE ~~accompanying~~YEARS ~~notes~~ended toJUNE ~~the~~30, ~~consolidated financial~~2016 ~~statements~~AND 2015 (IN U.S. $)

~~F-7~~1. ORGANIZATION

China Modern Agricultural Information, Inc. (the “Company”), formerly known as Trade Link Wholesalers, Inc. (“Trade Link”), was incorporated on December 22, 2008 under the laws of the State of Nevada. On April 4, 2011, the Board of Directors of Trade Link filed an amendment to the Certificate of Incorporation with the State of Nevada to effect the name change from Trade Link to China Modern Agricultural Information, Inc.

On January 28, 2011, Trade Link entered into a Share Exchange Agreement (the “Exchange Agreement”) by and among (i) Value Development Holdings, Ltd. (“Value ~~subsidiaries~~Development”), a British Virgin Islands company, (“BVI”) (ii) Value Development’s stockholders, (iii) Trade Link, and (iv) Trade Link’s principal stockholders. Pursuant to the terms of the Exchange Agreement, Value Development and the Value Development stockholders transferred to Trade Link all of the shares of Value Development in exchange for the issuance of 35,998,000 shares of Trade Link’s common stock as set forth in the Exchange Agreement, so that the Value Development stockholders owned 87.80% of Trade Link’s outstanding shares (the “Share Exchange”).

~~CONSOLIDATED~~On ~~STATEMENTS~~January OF28, ~~CASH~~2011, ~~FLOWS~~Value Development through its wholly subsidiaries, Value Development Group Limited completed the acquisition of Harbin Jiasheng Consulting Managerial Co. Ltd. (~~CONTINUED~~“Jiasheng Consulting” or “WFOE”), a holding company. Jiasheng Consulting has Variable Interest Entity (“VIE”) agreements with Mr. Liu Zhengxin, the Company’s Chief HR Officer, and Mr. Wang Youliang, the Company’s Chief Executive Officer, as well as with Heilongjiang Zhongxian Information Co., Ltd. (“Zhongxian Information”). Mr. Zhengxin holds a 62% equity interest in Zhongxian Information and Mr. Youliang holds a 38% equity interest in Zhongxian Information. Pursuant to the VIE agreement signed by Mr. Zhengxin and Mr. Youliang, Jiasheng Consulting now controls and performs all management responsibilities for Zhongxian Information. The contractual arrangements are comprised of a series of agreements, including a shareholder voting rights proxy agreement, exclusive consulting and service agreement, exclusive call option agreement and equity pledge agreement, through which Jiasheng Consulting has the right to provide exclusive and complete business support and technical and consulting services to Zhongxian Information for an annual fee in the amount of Zhongxian Information’s yearly net profits after tax. Additionally, Zhongxian Information’s stockholders have pledged their rights, title and equity interests in Zhongxian Information as security for the collection of consulting and service fees provided through an Equity Pledge Agreement.

~~FOR THE FISCAL YEARS ENDED JUNE 30, 2015 AND 2014 (IN U.S. $)~~F-10

	2015			2014
Effect of exchange rate changes on cash		714,294			791,480
Net increase in cash		(3,886,773	)		32,885,080
Cash, beginning of year		58,032,554			25,147,474
Cash, end of year	$	54,145,781		$	58,032,554
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	-		$	-
Cash paid for interest	$	-		$	-
Noncash financing activities:
Payment of accrued expenses and other payables by shareholder	$	138,000		$	151,253

China Modern Agricultural Information, Inc.

~~See accompanying notes to the consolidated~~and ~~financial statements.~~subsidiaries

~~F-8~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

~~China~~FOR ~~Modern~~THE ~~Agricultural~~YEARS ~~Information~~ended JUNE 30, ~~Inc~~2016 AND 2015 (IN U.S. $)

~~and subsidiaries~~1. ORGANIZATION (CONTINUED)

~~NOTES~~In order to further reinforce Jiasheng Consulting’s TOrights ~~THE~~to ~~CONSOLIDATED~~control ~~FINANCIAL~~and ~~STATEMENTS~~operate Zhongxian Information, the stockholders of Zhongxian Information have granted Jiasheng Consulting the exclusive right and option to acquire all of their equity interests in Zhongxian Information through an Exclusive Option Agreement.

~~FOR~~The exchange agreement transaction constituted ~~THE~~a ~~FISCAL~~reverse ~~YEARS~~takeover ~~ended~~transaction. ~~JUNE~~Accordingly, 30reverse takeover accounting was adopted for the preparation of the consolidated financial statements. As a result, ~~2015~~the ~~AND~~consolidated ~~2014~~financial statements are issued under the name of China Modern Agricultural Information, Inc. (INthe Ulegal acquirer), but are a continuation of the consolidated financial statements of Value Development (the accounting acquirer) and the VIE its subsidiaries.S Before and after the Share Exchange, Value Development, Value Development Group Limited (a wholly-owned subsidiary of Value Development), Jiasheng Consulting, and Zhongxian Information and their 99% owned subsidiary, Heilongjiang Xinhua Cattle Industry Co., $Ltd. (“Xinhua Cattle”) were under common control. Therefore, the reorganization was effectively a legal recapitalization accounted for as transactions between entities under common control at the carry over basis, in a manner similar to pooling-of-interests accounting.

1Zhongxian Information and Xinhua Cattle are engaged in the acquisition, breeding and rearing of dairy cows, and production and sale of fresh milk to manufacturing and distribution companies. ~~ORGANIZATION~~Zhongxian Information was established in China in January 2005 with registered capital of 10 million Renminbi (“RMB”). In February 2006, it acquired 99% of the registered capital of Xinhua Cattle, which was established in China in December 2005 with registered capital of three million RMB. Xinhua Cattle had no significant activities and its cost approximated the fair value at the date of acquisition.

~~China~~On ~~Modern~~November ~~Agricultural~~23, ~~Information~~2011, Zhongxian Information ~~Inc.~~acquired ~~(the~~100% ~~“Company”),~~of ~~formerly~~the ~~known~~equity asinterest ~~Trade~~of ~~Link~~Shangzhi ~~Wholesalers~~Yulong Co., ~~Inc~~Ltd. (“~~Trade Link~~Yulong”), ~~was~~from ~~incorporated on~~Yulong’s ~~December~~original ~~22,~~stockholders for ~~2008~~consideration ~~under the laws~~ of ~~the State of Nevada. On April 4~~9, ~~2011~~000,000 ~~the~~shares ~~Board~~ of ~~Directors of Trade Link filed an amendment to~~ the ~~Certificate~~Company’s ofcommon ~~Incorporation~~stock ~~with~~and ~~the~~cash ~~State~~consideration of ~~Nevada to effect the name change from Trade Link to China Modern Agricultural Information~~$4, ~~Inc~~396,000.

OnYulong ~~January~~was ~~28,~~a ~~2011,~~privately ~~Trade~~held ~~Link~~company ~~entered~~in ~~into~~China aengaged ~~Share~~in ~~Exchange Agreement (~~the ~~“Exchange Agreement”) by and among (i) Value Development Holdings~~acquisition, ~~Ltd. (“Value~~breeding ~~Development”), a British Virgin Islands company, (“BVI”) (ii) Value Development’s stockholders, (iii) Trade Link,~~ and ~~(iv)~~rearing ~~Trade Link’s principal stockholders. Pursuant to the terms~~ of ~~the~~dairy ~~Exchange Agreement~~cows, ~~Value Development~~ and ~~the~~production ~~Value~~and ~~Development~~sale ~~stockholders transferred to Trade Link all~~ of ~~the~~fresh ~~shares~~milk ofto ~~Value Development in exchange for the issuance~~manufacturing ofand ~~35,998,000~~distribution ~~shares of Trade Link’s common stock as set forth in the Exchange Agreement, so that the Value Development stockholders owned 87~~companies.~~80% of Trade Link’s outstanding shares (the “Share Exchange”).~~

On January 28, 2011, Value Development through its wholly subsidiaries, Value Development Group Limited completed the acquisition of Harbin Jiasheng Consulting Managerial Co. Ltd. (“Jiasheng Consulting” or “WFOE”), a holding company. Jiasheng Consulting has Variable Interest Entity (“VIE”) agreements with Mr. Liu Zhengxin, the Company’s Chief HR Officer, and Mr. Wang Youliang, the Company’s Chief Executive Officer, as well as with Heilongjiang Zhongxian Information Co., Ltd. (“Zhongxian Information”). Mr. Zhengxin holds a 62% equity interest in Zhongxian Information and Mr. Youliang holds a 38% equity interest in Zhongxian Information. Pursuant to the VIE agreement signed by Mr. Zhengxin and Mr. Youliang, Jiasheng Consulting now controls and performs all management responsibilities for Zhongxian Information. The contractual arrangements are comprised of a series of agreements, including a shareholder voting rights proxy agreement, exclusive consulting and service agreement, exclusive call option agreement and equity pledge agreement, through which Jiasheng Consulting has the right to provide exclusive and complete business support and technical and consulting services to Zhongxian Information for an annual fee in the amount of Zhongxian Information’s yearly net profits after tax. Additionally, Zhongxian Information’s stockholders have pledged their rights, title and equity interests in Zhongxian Information as security for the collection of consulting and service fees provided through an Equity Pledge Agreement.F-11

~~F-9~~China Modern Agricultural Information, Inc.

~~China~~and ~~Modern Agricultural Information, Inc.~~ subsidiaries

~~and~~NOTES ~~subsidiaries~~TO THE CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES~~FOR TO THE ~~CONSOLIDATED~~YEARS ~~FINANCIAL~~ended ~~STATEMENTS~~JUNE 30, 2016 AND 2015 (IN U.S. $)

~~FOR THE~~1. ~~FISCAL~~ORGANIZATION ~~YEARS ended JUNE 30, 2015 AND 2014~~ (~~IN U.S. $~~CONTINUED)

1.Our corporate ~~ORGANIZATION~~structure ~~(CONTINUED)~~pre-restructure is set forth below

InOn ~~order~~July to16, ~~further~~2015, ~~reinforce~~the ~~Jiasheng~~Company, transferred ~~Consulting’s~~100% ~~rights~~of tothe ~~control~~issued and ~~operate~~outstanding ~~Zhongxian~~shares ~~Information~~of Value Development Holdings, Ltd. (“Value Development”) to China Dairy Corporation Ltd. (“China Dairy,” a Hong Kong company), which is 60% owned indirectly by the ~~stockholders~~Company ofthrough ~~Zhongxian~~the ~~Information~~Company’s wholly-owned subsidiary, Hope Diary Holdings Ltd. (“Hope Diary,” a British Virgin Islands company). China Dairy was newly incorporated in January 2015 and did not have ~~granted~~any significant assets or liabilities, or business operations, which was 100% ~~Jiasheng~~owned ~~Consulting~~by Company’s PRC corporate advisor, who formed China Dairy on behalf of the ~~exclusive~~Company. ~~right~~Further, ~~and~~the ~~option~~sole toshareholder transferred ~~acquire~~60% ~~all~~of the total outstanding shares of ~~their~~China ~~equity~~Dairy ~~interests~~to inHope ~~Zhongxian~~Diary ~~Information~~and ~~through~~40% anto various shareholders and consultants of ~~Exclusive~~the ~~Option~~Company ~~Agreement~~(as described below) for nominal consideration.

~~The~~These ~~exchange~~transactions ~~agreement~~involve ~~transaction constituted~~no ~~a reverse takeover transaction. Accordingly, reverse takeover accounting was adopted for the preparation of the consolidated~~consideration ~~financial~~received ~~statements.~~or Aspaid aas ~~result,~~Value ~~the~~Development ~~consolidated~~and ~~financial~~China ~~statements~~Dairy are ~~issued~~ under ~~the~~common ~~name~~control ofby ~~China Modern Agricultural Information, Inc. (~~the ~~legal~~Company ~~acquirer), but are a continuation of the consolidated financial statements of Value Development (the accounting acquirer)~~ and ~~the~~this ~~VIE~~transaction ~~its~~is ~~subsidiaries. Before and after the Share Exchange, Value Development, Value Development Group Limited (~~a ~~wholly-owned subsidiary of Value Development), Jiasheng Consulting, and Zhongxian Information and their 99% owned subsidiary,~~restriction ~~Heilongjiang~~to ~~Xinhua Cattle Industry Co., Ltd. (“Xinhua Cattle”) were under common control. Therefore,~~ the ~~reorganization was~~Company’s ~~effectively~~interests ~~a legal recapitalization accounted for as transactions between entities under common control at the carry over basis,~~ in aValue ~~manner similar to pooling-of-interests accounting~~Development.

Zhongxian Information and Xinhua Cattle are engaged in the acquisition, breeding and rearing of dairy cows, and production and sale of fresh milk to manufacturing and distribution companies. Zhongxian Information was established in China in January 2005 with registered capital of 10 million Renminbi (“RMB”). In February 2006, it acquired 99% of the registered capital of Xinhua Cattle, which was established in China in December 2005 with registered capital of three million RMB. Xinhua Cattle had no significant activities and its cost approximated the fair value at the date of acquisition.F-12

~~On November 23, 2011, Zhongxian~~China ~~Information~~Modern ~~acquired~~Agricultural ~~100% of the equity interest of Shangzhi Yulong Co.~~Information, ~~Ltd~~Inc. ~~(“Yulong”) from Yulong’s original stockholders for consideration of 9,000,000 shares of the Company’s common stock and cash consideration of $4,396,000.~~

~~Yulong was a privately held company in China engaged in the acquisition, breeding~~ and ~~rearing of dairy cows, and production and sale of fresh milk to manufacturing~~ ~~and distribution companies.~~subsidiaries

~~F-10~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

~~China~~FOR ~~Modern~~THE ~~Agricultural~~YEARS ~~Information~~ended JUNE 30, ~~Inc~~2016 AND 2015 (IN U.S. $)

~~and subsidiaries~~1. ORGANIZATION (CONTINUED)

~~NOTES~~The 40% of the 10,000 shares of China TODairy ~~THE~~were ~~CONSOLIDATED~~transferred ~~FINANCIAL~~from ~~STATEMENTS~~the sole shareholder of China Dairy to the following entities for nominal consideration, which has direct or indirect relationship with the shareholder and consultants of the Company: 3% to Beijing Ruihua Future, 4% to Donghe Group, 3% to Integral Capital, 20% to Dingxi Shanghai Fund and 10% to Zhiyuan International. Immediately after the transfer, 65,000 bonus shares were issued at no consideration for every existing share held by the following entities:

FOR THE FISCAL YEARS ended JUNE 30, 2015 AND 2014 (IN U.S. $)

	Original Shares		After bonus shares issued

Hope Diary Holdings Ltd.		6,000		390,000,000
Beijing Ruihua Future Investment Management Co. Ltd.		300		19,500,000
Donghe Group Limited		400		26,000,000
Integral Capital Group Pty Ltd.		300		19,500,000
Dingxi (Shanghai ) Equity Investment Fund		2,000		130,000,000
Zhiyuan International Holding Co. Limited		1,000		65,000,000

Total		10,000		650,000,000

1Value Development is the sole owner of Value Development Group Limited, which is the sole owner of Harbin Jiasheng Consulting Managerial Co. ~~ORGANIZATION~~Ltd., ~~(CONTINUED)~~which is the Company’s subsidiary in China, with respect to which the operating company, Heilongjiang Zhongxian Information Co. Ltd., is a variable interest entity. The effect of this transaction was to reduce the interest of the Company in its operating company by 40%. The Company uses the China Dairy’s offering price for IPO to approximate the fair value of the 40% stock granted to the shareholder and consultants. The Company recognized a stock compensation to the shareholder and consultants of approximately $32,098,000 and $5,664,000, respectively, during the three months ended September 30, 2015 in general and administrative expense.

AsOn aSeptember ~~result~~16, 2015 the Company’s 60%-owned subsidiary, Harbin Jiasheng Consulting Management Co., Ltd. ("Jiasheng Consulting"), exercised its option to purchase all of the ~~entry~~registered ~~into~~equity of the Company’s operating subsidiary, Heilongjiang Zhongxian Information ~~foregoing~~Co., ~~agreements~~Ltd. ("Zhongxian Information") from its stockholders Zhengxin Liu and Youliang Wang, who are also the members of the Company’s ~~has~~Board aof ~~corporate~~Directors, ~~structure~~for asRMB10, ~~set~~000 ~~forth~~(approximately ~~below:~~$1,554).

F-1113

China Modern Agricultural Information, Inc.

and subsidiaries

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE ~~FISCAL~~ YEARS ended JUNE 30, ~~2015~~2016 AND ~~2014~~ 2015 (IN U.S. $)

21. ~~SUMMARY~~ORGANIZATION ~~OF SIGNIFICANT ACCOUNTING POLICIES~~(CONTINUED)

~~Basis~~Prior to the acquisition, Jiasheng Consulting controlled Zhongxian Information through a series of ~~Accounting~~contractual agreements, which made Zhongxian Information a variable interest entity, the effect of which was to cause the balance sheet and ~~Presentation~~operating results of Zhongxian Information to be consolidated with those of Jiasheng Consulting in the Company’s financial statements. As a result of the acquisition by Jiasheng Consulting of the registered ownership of Zhongxian Information, the balance sheet and operating results of Zhongxian Information will hereafter continue to be consolidated with those of Jiasheng Consulting as its 100% owned subsidiary. On April 8, 2016, the Company’s 60% owned subsidiary, China Dairy Corporation Limited issued 84,906,541 CDI shares at AUD $0.2 per share on ASX and raised total fund of AUD $16,981,308 (USD $13,021,267). After the IPO, the Company’s ownership was diluted to 53.07%.

~~The~~As ~~accompanying~~a ~~consolidated~~result ~~financial statements have been prepared in accordance with accounting principles generally accepted in the United States~~ of ~~America and include~~ the ~~financial~~entry ~~statements~~into ~~of China Modern Agricultural Information, Inc. and its subsidiaries, Value Development, Value~~the ~~Development~~foregoing ~~Group Limited~~agreements, ~~Jiasheng~~the ~~Consulting, and its VIE, Zhongxian Information and Zhongxian Information’s 99% owned subsidiary, Xinhua Cattle and its 100% owned subsidiary, Yulong. The~~ Company ishas ~~the~~a ~~primary~~corporate ~~beneficiary~~structure ofas ~~the~~set ~~VIE~~forth ~~and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.~~below:

The audited consolidated financial statements of the Company as of June 30, 2015 and for the fiscal years ended June 30, 2015 and 2014, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements.F-14

~~Variable~~China ~~Interest~~Modern ~~Entity~~Agricultural Information, Inc.

Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation” (“ASC 810”), the Company is required to include in its consolidated financial statements the financial statements of its VIE’s. ASC 810 requires a VIE to be consolidated by a company if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns. VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and ~~enjoys the rewards normally associated with ownership of the~~ ~~entity, and therefore the company is the primary beneficiary of the entity.~~subsidiaries

~~Zhongxian Information and its subsidiaries~~NOTES ~~(collectively,~~TO ~~the~~THE ~~“Chinese~~CONSOLIDATED ~~VIE”)~~FINANCIAL ~~have~~STATEMENTS no assets that are collateral for or restricted solely to settle their obligations. The creditors of the Chinese VIE and its subsidiaries do not have recourse to the Company’s general credit. Because Value Development, Value Development Group Limited and Jiasheng Consulting are established for the sole purpose of holding ownership interest and do not have any operations, the financial statement amounts and balances are principally those of the Chinese VIE and its subsidiaries.

~~F-12~~FOR THE YEARS ended JUNE 30, 2016 AND 2015 (IN U.S. $)

~~China Modern~~2. ~~Agricultural~~SUMMARY ~~Information,~~OF ~~Inc.~~SIGNIFICANT ACCOUNTING POLICIES

~~and~~Basis ~~subsidiaries~~of Accounting and Presentation

~~NOTES~~The accompanying consolidated financial TOstatements ~~THE~~have ~~CONSOLIDATED~~been ~~FINANCIAL~~prepared ~~STATEMENTS~~in accordance with accounting principles generally accepted in the United States of America and include the financial statements of China Modern Agricultural Information, Inc. and its subsidiaries, Hope Diary, China Dairy (Hope Diary’s 53.07% owned subsidiary), Value Development, Value Development Group Limited, Jiasheng Consulting, and, Zhongxian Information and Zhongxian Information’s 99% owned subsidiary, Xinhua Cattle and its 100% owned subsidiary, Yulong. All significant intercompany accounts and transactions have been eliminated in consolidation.

~~FOR~~The audited consolidated financial ~~THE~~statements ~~FISCAL~~of ~~YEARS~~the Company as of June 30, 2016 and for the years ended ~~JUNE~~June 30, 2016 and 2015, ~~AND~~have ~~2014~~been prepared in accordance ~~(IN~~with ~~U.S.~~accounting $)principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements.

~~2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)~~F-15

~~Variable~~China ~~Interest~~Modern ~~Entity~~Agricultural ~~(Continued)~~Information, Inc.

~~Under ASC 810, an enterprise has a controlling financial interest in a VIE,~~ and ~~must consolidate that VIE, if the enterprise has both of the following characteristics:~~ (a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The Company’s determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de facto agents, has the unilateral ability to exercise those rights. The Chinese VIE’s actual stockholders do not hold any kick-out rights that will affect the consolidation determination.subsidiaries

~~Foreign~~NOTES TO ~~Currency~~THE ~~Translations~~CONSOLIDATED FINANCIAL STATEMENTS

~~All Company assets are located in~~FOR ~~People’s~~THE ~~Republic~~YEARS ofended ~~China~~JUNE ~~(“PRC”).~~30, ~~The~~2016 ~~functional~~AND ~~currency~~2015 ~~for the majority of the Company’s operations is the Renminbi~~ (~~“RMB”).~~IN ~~The Company uses the United States dollar (“US Dollar” or “US$” or “$”) for financial reporting purposes~~U. ~~The consolidated financial statements of the Company have been translated into US dollars in accordance with FASB ASC 830, “Foreign Currency Matters~~S.~~” All~~ asset and liability accounts have been translated using the exchange rate in effect at the balance sheet date. Equity accounts have been translated at their historical exchange rates when the capital transactions occurred. Statements of income and other comprehensive income amounts have been translated using the average exchange rate for the periods presented. Adjustments resulting from the translation of the Company’s consolidated financial statements are recorded as other comprehensive income (“OCI”$).

~~F-13~~2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

~~China~~Basis ~~Modern~~of ~~Agricultural~~Accounting ~~Information,~~and ~~Inc.~~Presentation (continued)

~~and~~Variable Interest ~~subsidiaries~~Entity

~~NOTES~~Pursuant to Financial TOAccounting ~~THE~~Standards ~~CONSOLIDATED~~Board ~~FINANCIAL~~(“FASB”) ~~STATEMENTS~~Accounting Standards Codification (“ASC”) 810, “Consolidation” (“ASC 810”), the Company is required to include in its consolidated financial statements the financial statements of its VIE’s. ASC 810 requires a VIE to be consolidated by a company if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns. VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the company is the primary beneficiary of the entity.

~~FOR~~Zhongxian Information and its subsidiaries ~~THE~~(collectively, ~~FISCAL~~the ~~YEARS~~“Chinese ~~ended~~VIE”) ~~JUNE~~have ~~30,~~no ~~2015~~assets ~~AND~~that ~~2014~~are collateral for or restricted solely to settle their obligations. ~~(IN~~The Ucreditors of the Chinese VIE and its subsidiaries do not have recourse to the Company’s general credit.S. $)Because Value Development, Value Development Group Limited and Jiasheng Consulting are established for the sole purpose of holding ownership interest and do not have any operations, the financial statement amounts and balances are principally those of the Chinese VIE and its subsidiaries.

2.Under ~~SUMMARY~~ASC OF810, ~~SIGNIFICANT~~an ~~ACCOUNTING~~enterprise ~~POLICIES~~has a controlling financial interest in a VIE, and must consolidate that VIE, if the enterprise has both of the following characteristics: (~~CONTINUED~~a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE. The Company’s determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de facto agents, has the unilateral ability to exercise those rights. The Chinese VIE’s actual stockholders do not hold any kick-out rights that will affect the consolidation determination.

~~Foreign~~On ~~Currency~~September ~~Translations~~16, ~~(Continued)~~2015 the VIE structure was terminated when Jiasheng Consulting exercised its option to purchase all of the registered equity of Zhongxian Information. Jiasheng Consulting became the sole owner of Zhongxian Information.

~~The exchange rates used to translate amounts in RMB into US dollars for preparing the consolidated financial statements are as follows:~~F-16

	June 30, 2015		June 30, 2014
Balance sheet items, except for stockholders’ equity, as of period end		0.1632		0.1624
Amounts included in the statements of income, statement of changes in stockholders’ equity and statements of cash flows for the period		0.1627		0.1627

China Modern Agricultural Information, Inc.

~~Foreign currency translation adjustments of $560,995~~ and ~~$874,250 for the fiscal years ended June 30, 2015 and 2014, respectively, have been reported as other comprehensive~~ income in the consolidated statements of income and other comprehensive income. Other comprehensive income of the Company consists entirely of foreign currency translation adjustments. Pursuant to ASC 740-30-25-17, “Exceptions to Comprehensive Recognition of Deferred Income Taxes,” the Company does not recognize deferred U.S. taxes related to the undistributed earnings of its foreign subsidiaries ~~and, accordingly, recognizes no income tax expense or benefit from foreign currency translation adjustments.~~

~~Although government regulations~~NOTES ~~now~~TO ~~allow~~THE ~~convertibility~~CONSOLIDATED ofFINANCIAL ~~the~~STATEMENTS RMB for current account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations that the RMB could be converted into US dollars at that rate or any other rate.

~~The value of the RMB against the~~FOR USTHE ~~dollar~~YEARS ~~and~~ended ~~other~~JUNE ~~currencies may fluctuate and is affected by~~30, ~~among~~2016 ~~other~~AND ~~things,~~2015 ~~changes~~(IN ~~in China’s political and economic conditions~~U.S. ~~Any~~$) ~~significant revaluation of the RMB could materially affect the Company’s consolidated financial condition in terms of US dollar reporting.~~

~~F-14~~2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

~~China Modern~~Foreign ~~Agricultural~~Currency ~~Information, Inc.~~ Translations

All Company assets are located in the People’s Republic of China (“PRC”). The functional currency for the majority of the Company’s operations is the Renminbi (“RMB”). The Company uses the United States dollar (“US Dollar” or “US$” or “$”) for financial reporting purposes. The consolidated financial statements of the Company have been translated into US dollars in accordance with FASB ASC 830, “Foreign Currency Matters.” All asset and liability accounts have been translated using the exchange rate in effect at the balance sheet date. Equity ~~subsidiaries~~accounts have been translated at their historical exchange rates when the capital transactions occurred. Statements of income and other comprehensive income amounts have been translated using the average exchange rate for the periods presented. Adjustments resulting from the translation of the Company’s consolidated financial statements are recorded as other comprehensive income (“OCI”).

~~NOTES~~The exchange rates used to translate TOamounts ~~THE~~in ~~CONSOLIDATED~~RMB ~~FINANCIAL~~and ~~STATEMENTS~~Australian dollars (the “A$”) into US dollars for preparing the consolidated financial statements are as follows:

FOR THE FISCAL YEARS ended JUNE 30, 2015 AND 2014 (IN U.S. $)

	June 30, 2016				June 30, 2015
	RMB		A$		RMB		A$
Balance sheet items, except for stockholders’ equity, as of period end		0.1505		0.7441		0.1632		0.7687

Amounts included in the statements of income, statement of changes in stockholders’ equity and statements of cash flows for the period		0.1554		0.7283		0.1627		0.8364

~~2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)~~F-17

~~Revenue~~China Modern ~~Recognition~~Agricultural Information, Inc.

~~The Company’s primary sources of revenues are derived from (a) sale of fresh milk to Chinese manufacturing~~ and ~~distribution companies of dairy products and~~ (b) commissions from local farmers on their monthly milk sales. The Company’s revenue recognition policies comply with FASB ASC 605, “Revenue Recognition.” Revenues from the sale of goods are recognized when the goods are delivered and the title is transferred, the risks and rewards of ownership have been transferred to the customer, the price is fixed and determinable and collection of the related receivable is reasonably assured.subsidiaries

~~Milk sales revenue is recognized~~NOTES ~~when~~TO ~~the~~THE ~~title~~CONSOLIDATED ~~has~~FINANCIAL ~~been~~STATEMENTS passed to the customers, which is the date when the milk is delivered to designated locations and accepted by the customers and the previously discussed requirements are met. Fresh milk is delivered to its customers on a daily basis. The customers’ acceptance occurs upon inspection of the quality and measurement of quantity at the time of delivery. The Company does not provide the customer with the right of return. Sales commission revenue is recognized on a monthly basis based on monthly sales reports received.

~~Vulnerability~~FOR THE ~~Due~~YEARS toended ~~Operations in~~JUNE ~~PRC~~30, 2016 AND 2015 (IN U.S. $)

~~The Company’s operations may be adversely affected by significant political, economic and social uncertainties in the PRC~~2. ~~Although~~SUMMARY ~~the~~OF ~~PRC~~SIGNIFICANT ~~government~~ACCOUNTING ~~has been~~POLICIES pursuing economic reform policies for more than twenty years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC’s political, economic and social conditions. There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective.(CONTINUED)

~~The Company believes that Jiasheng~~Foreign ~~Consulting’s~~Currency ~~contractual~~Translations agreements with Zhongxian Information are in compliance with PRC law and are legally enforceable. The stockholders of Zhongxian Information are also the senior management of the Company and therefore the Company believes that they have no current interest in seeking to act contrary to the contractual agreements. However, Zhongxian Information and its stockholders may fail to take certain actions required for the Company’s business or to follow the Company’s instructions despite their contractual obligations to do so.(continued)

FForeign currency translation adjustments of $(11,711,703) and $560,995, respectively, for the years ended June 30, 2016 and 2015, have been reported as other comprehensive income (loss) in the consolidated statements of income and other comprehensive income (loss). Other comprehensive income (loss) of the Company consists entirely of foreign currency translation adjustments. Pursuant to ASC 740-1530-25-17, “Exceptions to Comprehensive Recognition of Deferred Income Taxes,” the Company does not recognize deferred U.S. taxes related to the undistributed earnings of its foreign subsidiaries and, accordingly, recognizes no income tax expense or benefit from foreign currency translation adjustments.

~~China~~Although ~~Modern~~government ~~Agricultural~~regulations ~~Information~~now allow convertibility of the RMB for current account transactions, ~~Inc~~significant restrictions still remain. Hence, such translations should not be construed as representations that the RMB could be converted into US dollars at that rate or any other rate.

The value of the RMB against the US dollar and other currencies may fluctuate and is affected by, among other things, changes in China’s ~~subsidiaries~~political and economic conditions. Any significant revaluation of the RMB could materially affect the Company’s consolidated financial condition in terms of US dollar reporting.

~~NOTES~~Revenue ~~TO THE CONSOLIDATED FINANCIAL STATEMENTS~~ Recognition

~~FOR~~The ~~THE~~Company’s ~~FISCAL~~primary ~~YEARS~~sources ~~ended~~of ~~JUNE~~revenues ~~30,~~are ~~2015~~derived ~~AND~~from ~~2014~~(a) sale of fresh milk to Chinese manufacturing and distribution companies of dairy products and (INb) Ucommissions from local farmers on their monthly milk sales.S The Company’s revenue recognition policies comply with FASB ASC 605, “Revenue Recognition.” $)Revenues from the sale of goods are recognized when the goods are delivered and the title is transferred, the risks and rewards of ownership have been transferred to the customer, the price is fixed and determinable and collection of the related receivable is reasonably assured.

~~2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)~~F-18

~~Vulnerability~~China Modern ~~Due~~Agricultural toInformation, ~~Operations in~~Inc. ~~PRC (Continued)~~

Furthermore, if Zhongxian Information or its stockholders do not act in the best interests of the Company under the contractual agreements or any dispute relating to these contractual agreements remains unresolved, the Company will have to enforce its rights through the operations of PRC law and ~~courts and therefore will be subject to uncertainties in the PRC legal system.~~ subsidiaries

~~All of these contractual agreements~~NOTES ~~are~~TO ~~governed~~THE byCONSOLIDATED ~~PRC~~FINANCIAL ~~law~~STATEMENTS and provide for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual agreements, which could make it difficult to exert effective control over Zhongxian Information, and its ability to conduct the Company’s business may be adversely affected.

~~Use~~FOR THE ofYEARS ~~Estimates~~ended JUNE 30, 2016 AND 2015 (IN U.S. $)

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods2. ~~Actual results~~SUMMARY ~~could~~OF ~~differ~~SIGNIFICANT ~~from~~ACCOUNTING ~~those~~POLICIES ~~estimates.~~(CONTINUED)

~~F-16~~Revenue Recognition (continued)

~~China~~Milk ~~Modern~~sales ~~Agricultural~~revenue ~~Information~~is recognized when the title has been passed to the customers, ~~Inc~~which is the date when the milk is delivered to designated locations and accepted by the customers and the previously discussed requirements are met. Fresh milk is delivered to its customers on a daily basis. The customers’ acceptance occurs upon inspection of the quality and measurement of quantity at the time of delivery. The Company does not provide the customer with the right of return. Sales commission revenue is recognized on a monthly basis based on monthly sales reports received.

~~and~~Vulnerability ~~subsidiaries~~Due to Operations in PRC

~~NOTES~~The TOCompany’s ~~THE~~operations ~~CONSOLIDATED~~may ~~FINANCIAL~~be ~~STATEMENTS~~adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than twenty years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC’s political, economic and social conditions. There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective.

~~FOR~~Use ~~THE~~of ~~FISCAL YEARS ended JUNE 30, 2015 AND 2014 (IN U.S. $)~~Estimates

2The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. ~~SUMMARY~~Actual OFresults ~~SIGNIFICANT~~could ~~ACCOUNTING~~differ ~~POLICIES~~from ~~(CONTINUED)~~those estimates.

~~Fair Value of Financial Instruments~~F-19

~~FASB~~China Modern ~~ASC~~Agricultural ~~820~~Information, “Fair Value Measurement” specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs)Inc. In ~~accordance with ASC 820, the following summarizes the fair value hierarchy:~~

	Level 1 Inputs –	Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.
	Level 2 Inputs –	Inputs other than the quoted prices in active markets that are observable either directly or indirectly.
	Level 3 Inputs –	Inputs based on valuation techniques that are both unobservable and significant to the overall fair value measurements.

and subsidiaries

~~ASC 820 requires the use of observable~~NOTES ~~market~~TO ~~data,~~THE ~~when~~CONSOLIDATED ~~available,~~FINANCIAL inSTATEMENTS making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

~~The~~FOR ~~Company~~THE ~~did~~YEARS ~~not~~ended ~~identify~~JUNE ~~any assets or liabilities that are required to be presented at fair value on a recurring basis. Carrying values of non-derivative financial instruments~~30, ~~including~~2016 ~~cash,~~AND ~~accounts~~2015 ~~receivable,~~(IN ~~interest receivable, accrued expenses, and other payables, and stockholder loans, approximated their fair values due to the short maturity of these financial instruments~~U. ~~The carrying value of notes receivable is valued at their net realizable value which approximates the fair value~~S. ~~There were~~$) ~~no changes in methods or assumptions during the periods presented.~~

~~F-17~~2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

~~China~~Fair ~~Modern~~Value ~~Agricultural~~of ~~Information,~~Financial ~~Inc.~~ Instruments

~~and~~FASB ~~subsidiaries~~ASC 820, “Fair Value Measurement” specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based on market data obtained from independent sources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

	Level 1 Inputs –	Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.

	Level 2 Inputs –	Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

	Level 3 Inputs –	Inputs based on valuation techniques that are both unobservable and significant to the overall fair value measurements.

~~FOR~~ASC ~~THE~~820 ~~FISCAL~~requires ~~YEARS~~the ~~ended~~use ~~JUNE~~of 30observable market data, ~~2015~~when ~~AND~~available, ~~2014~~in making fair value measurements. When inputs used to measure ~~(IN~~fair Uvalue fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements.S. $)Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

2The Company did not identify any assets or liabilities that are required to be presented at fair value on a recurring basis. ~~SUMMARY~~Carrying values OFof ~~SIGNIFICANT~~non-derivative ~~ACCOUNTING~~financial ~~POLICIES~~instruments, ~~(CONTINUED)~~including cash, accounts receivable, interest receivable, accrued expenses, and other payables, and stockholder loans, approximated their fair values due to the short maturity of these financial instruments. The carrying value of notes receivable is valued at their net realizable value which approximates the fair value. There were no changes in methods or assumptions during the periods presented.

~~Advertising Costs~~F-20

~~Advertising costs are charged to~~China ~~operations~~Modern ~~when~~Agricultural ~~incurred. Advertising costs were $814 and $0 for the fiscal years ended June 30~~Information, ~~2015 and 2014, respectively~~Inc.

~~Cash~~ and ~~Cash Equivalents~~ subsidiaries

~~The Company considers~~NOTES ~~all~~TO ~~demand~~THE ~~and~~CONSOLIDATED ~~time~~FINANCIAL ~~deposits~~STATEMENTS ~~and all highly liquid investments with an original maturity of three months or less to be cash equivalents.~~

~~Accounts~~FOR THE ~~Receivable~~YEARS ended JUNE 30, 2016 AND 2015 (IN U.S. $)

~~Accounts receivable is stated at cost, net of an allowance for doubtful accounts, if required~~2. ~~Receivables~~SUMMARY ~~outstanding~~OF ~~longer~~SIGNIFICANT ~~than~~ACCOUNTING ~~the~~POLICIES payment terms are considered past due. The Company maintains an allowance for doubtful accounts for estimated losses when necessary resulting from the failure of customers to make required payments. The Company reviews the accounts receivable on a periodic basis and makes allowances where there is doubt as to the collectability of individual balances.(CONTINUED)

~~In evaluating the~~Advertising collectability of individual receivable balances, the Company considers many factors, including the age of the balance, the customer’s payment history, its current credit-worthiness and current economic trends. The Company has 30 days credit term for its milk sales, and usually receives the payment in the following month. The Company considers all accounts receivable at June 30, 2015 and 2014, to be fully collectible and, therefore, did not provide an allowance for doubtful accounts. For the periods presented, the Company did not write off any accounts receivable as bad debts.Costs

~~Inventories~~Advertising costs are charged to operations when incurred. Advertising costs are $62,929 and $814, respectively, for the years ended June 30, 2016 and 2015.

~~Inventories, comprised principally~~Cash ofand ~~livestock~~Cash ~~feed, are valued at the lower of cost or market value. The value of inventories is determined using the weighted average cost method.~~Equivalents

The Company ~~estimates~~considers anall ~~inventory allowance~~demand ~~for~~and ~~excessive~~time ordeposits ~~unusable~~and ~~inventories.~~all ~~Inventory~~highly ~~amounts~~liquid ~~are~~investments ~~reported~~with ~~net~~an oforiginal ~~such~~maturity ~~allowances,~~of ifthree ~~any.~~months ~~There was no allowance~~or ~~for~~less ~~excessive~~to orbe ~~unusable~~cash ~~inventories as of June 30, 2015 and 2014~~equivalents.

~~F-18~~Accounts Receivable

~~China~~Accounts ~~Modern~~receivable ~~Agricultural~~is ~~Information~~stated at cost, ~~Inc~~net of an allowance for doubtful accounts if required. Receivables outstanding longer than the payment terms are considered past due. The Company maintains an allowance for doubtful accounts for estimated losses when necessary resulting from the failure of customers to make required payments. The Company reviews the accounts receivable on a periodic basis and makes allowances where there is doubt as to the collectability of individual balances.

In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, the customer’s payment history, its current credit-worthiness and current economic trends. The Company has 30 days ~~subsidiaries~~credit term for its milk sales and usually receives the payment in the following month. The Company considers all accounts receivable at June 30, 2016 and 2015, to be fully collectible and, therefore, did not provide an allowance for doubtful accounts. For the periods presented, the Company did not write off any accounts receivable as bad debts.

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~ Inventories

~~FOR~~Inventories, ~~THE~~comprised ~~FISCAL~~principally ~~YEARS~~of ~~ended~~livestock ~~JUNE 30~~feed, ~~2015~~are ~~AND~~valued ~~2014 (IN~~at Uthe lower of cost or market value.S. $)The value of inventories is determined using the weighted average cost method.

2The Company estimates an inventory allowance for excessive or unusable inventories. ~~SUMMARY~~Inventory OFamounts ~~SIGNIFICANT~~are ~~ACCOUNTING~~reported ~~POLICIES~~net ~~(CONTINUED)~~of such allowances if any. There was no allowance for excessive or unusable inventories as of June 30, 2016 and 2015.

~~Prepaid Expenses~~F-21

~~Prepaid expenses as of June 30,~~China ~~2015~~Modern ~~and~~Agricultural ~~2014 mainly represent the prepayments of approximately $898~~Information,~~900~~ ~~and $2,900 for prepaid cow insurances expenses, for prepaid construction expenses, for heating expenses and for consulting services~~Inc. ~~The increase in the prepaid expenses was mainly due to the increases in the prepaid insurances expenses for the cows and the prepaid construction expenses in 2015.~~

~~Prepaid~~and ~~Land Leases~~subsidiaries

~~Prepaid land leases represent the~~NOTES ~~prepayment~~TO ~~for~~THE ~~grassland~~CONSOLIDATED ~~rental~~FINANCIAL ~~(see~~STATEMENTS ~~Note 7).~~

~~Property~~FOR THE YEARS ended JUNE 30, ~~Plant~~2016 ~~and~~AND ~~Equipment~~2015 (IN U.S. $)

~~Property, plant and equipment are recorded at cost, less accumulated depreciation~~2. ~~Cost~~SUMMARY ~~includes~~OF ~~the~~SIGNIFICANT ~~price~~ACCOUNTING ~~paid~~POLICIES to acquire or construct the asset, including capitalized interest during the construction period, and any expenditures that substantially increase the assets value or extends the useful life of an existing asset. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the periods benefited. Maintenance and repairs are generally expensed as incurred.(CONTINUED)

~~The estimated useful lives for property,~~Prepaid ~~plant and equipment categories are as follows:~~Expenses

	Machinery and equipment	3 to 10 years
	Automobiles	4 to 10 years
	Building and building improvements	10 to 20 years

Prepaid expenses as of June 30, 2016 and 2015 mainly represent the prepayments of approximately $1,217,000 and $898,900, respectively for prepaid cow insurance expenses and for heating expenses.

~~F-19~~Prepaid Land Leases

~~China~~Prepaid ~~Modern~~land ~~Agricultural~~leases ~~Information,~~represent ~~Inc.~~the prepayment for grassland rental (see Note 7).

~~and~~Property, ~~subsidiaries~~Plant and Equipment

~~NOTES~~Property, plant and equipment TOare ~~THE~~recorded ~~CONSOLIDATED~~at ~~FINANCIAL~~cost, ~~STATEMENTS~~less accumulated depreciation. Cost includes the price paid to acquire or construct the asset, including capitalized interest during the construction period, and any expenditure that substantially increase the assets value or extends the useful life of an existing asset. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the periods benefited. Maintenance and repairs are generally expensed as incurred.

~~FOR~~The ~~THE~~estimated ~~FISCAL~~useful ~~YEARS~~lives ~~ended~~for ~~JUNE 30~~property, ~~2015~~plant ~~AND~~and ~~2014 (IN~~equipment ~~U.S.~~categories $)are as follows:

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

	Machinery and equipment	3 to 10 years
	Automobiles	4 to 10 years
	Building and building improvements	10 to 20 years
	Leasehold improvements	Lesser of the remaining term or useful life

~~Impairment of Long~~F-~~lived Assets~~22

~~The Company utilizes FASB ASC 360,~~China ~~“Property,~~Modern ~~Plant~~Agricultural ~~and Equipment” (“ASC 360”)~~Information, ~~which addresses the financial accounting and reporting for the recognition and measurement of impairment losses for long-lived assets~~Inc. In accordance with ASC 360, long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company may recognize an impairment of a long-lived asset in the event the net book value of such asset exceeds the estimated future undiscounted cash flows attributable to the asset. No impairment of long-lived assets was recognized for the fiscal years ended June 30, 2015 and 2014.

~~Biological Assets~~and subsidiaries

~~Biological~~NOTES TO ~~assets~~THE ~~consist~~CONSOLIDATED ofFINANCIAL ~~dairy~~STATEMENTS ~~cows for milking purposes and breeding.~~

~~Immature~~FOR THE ~~Biological~~YEARS ~~Assets~~ended JUNE 30, 2016 AND 2015 (IN U.S. $)

~~Immature biological assets are recorded at cost, including acquisition costs, transportation costs, insurance expenses, and feeding costs, incurred in raising the cows~~2. ~~Once~~ ~~the~~SUMMARY ~~cow~~OF isSIGNIFICANT ~~able~~ACCOUNTING toPOLICIES ~~produce milk, the cost of the immature biological asset is transferred to mature biological assets using the weighted average cost method.~~(CONTINUED)

~~Mature Biological~~Impairment of Long-lived Assets

~~Mature biological assets are recorded~~The atCompany ~~their~~utilizes ~~original~~FASB ~~purchase~~ASC ~~price~~360, or“Property, ~~the~~Plant ~~weighted~~and ~~average~~Equipment” ~~immature~~(“ASC ~~biological~~360”), ~~asset~~which ~~transfer~~addresses ~~cost.~~the financial ~~Depreciation~~accounting isand ~~provided~~reporting ~~over~~ for the ~~estimated~~recognition ~~useful~~and ~~life~~measurement of ~~eight~~impairment ~~years~~losses ~~using~~for ~~the straight~~long-~~line~~lived ~~method~~assets. ~~The~~In ~~estimated residual value is 10%. Feeding and management~~accordance ~~costs~~with ~~incurred~~ASC on360, ~~mature~~long-lived ~~biological~~ assets are ~~included~~reviewed asfor ~~cost~~impairment ofwhenever ~~goods~~events ~~sold. When biological assets, including male cows, are retired~~ or ~~otherwise~~changes ~~disposed of~~ in ~~the~~circumstances ~~normal~~indicate ~~course~~that ~~of business,~~ the ~~cost~~carrying amount ~~and~~of ~~accumulated~~an ~~depreciation~~asset ~~will~~may not be ~~removed~~recoverable. ~~from the~~The ~~accounts~~Company ~~and~~may ~~any~~recognize ~~resulting~~an ~~gain~~impairment orof ~~loss~~a ~~will~~long-lived beasset ~~included~~ in the ~~results~~event ofthe ~~operations~~net book ~~for~~value ~~the~~of ~~respective~~such ~~period.~~asset ~~For~~exceeds the ~~fiscal year~~estimated ~~ended~~future ~~June~~undiscounted ~~30,~~cash ~~2015,~~flows aattributable ~~loss~~to ofthe ~~$1,101,101~~asset. onNo ~~the~~impairment ~~sale~~ of ~~the adult cows is included in non~~long-~~operating~~lived assets ~~expenses~~was inrecognized for the ~~accompanying consolidated~~years ~~statements~~ended ofJune ~~income~~30, 2016 and ~~other comprehensive income~~2015. ~~(See Note 6)~~

~~F-20~~Biological Assets

~~China~~Biological ~~Modern~~assets ~~Agricultural~~consist ~~Information,~~of ~~Inc~~dairy cows for milking purposes and breeding.

~~and~~Immature ~~subsidiaries~~Biological Assets

~~NOTES~~Immature TObiological ~~THE~~assets ~~CONSOLIDATED~~are ~~FINANCIAL~~recorded ~~STATEMENTS~~at cost, including acquisition costs, transportation costs, insurance expenses, and feeding costs, incurred in raising the cows. Once the cow is able to produce milk, the cost of the immature biological asset is transferred to mature biological assets using the weighted average cost method.

~~FOR~~Mature ~~THE~~Biological ~~FISCAL YEARS ended JUNE 30, 2015 AND 2014 (IN U.S. $)~~Assets

2Mature biological assets are recorded at their original purchase price or the weighted average immature biological asset transfer cost. Depreciation ~~SUMMARY~~is OFprovided ~~SIGNIFICANT~~over ~~ACCOUNTING~~the ~~POLICIES~~estimated useful life of eight years using the straight-line method. The estimated residual value is 10%. Feeding and management costs incurred on mature biological assets are included as cost of goods sold. When biological assets, including male cows, are retired or otherwise disposed of in the normal course of business, the cost and accumulated depreciation will be removed from the accounts and any resulting gain or loss will be included in the results of operations for the respective period. For the years ended June 30, 2016 and 2015, a loss of $373,108 and $1,104,345, respectively, on the sale of the adult cows is included in non-operating expenses in the accompanying consolidated statements of income and other comprehensive income. (~~CONTINUED~~See Note 5)

~~Biological Assets~~F-23

~~The Company reviews the carrying~~China ~~value~~Modern ofAgricultural its biological assets for impairment at least annually or whenever events and circumstances indicate that their carrying value may not be recoverable from the estimated future cash flows expected from their use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying valueInformation, ~~an impairment loss will be recognized equal to an amount by which the carrying value exceeds the fair value of the asset~~Inc. The factors considered by management in performing this assessment include current health status and production capacity. There were no impairment losses recorded during the fiscal years ended June 30, 2015 and 2014.

~~Income Taxes~~and subsidiaries

~~The Company accounts for income~~NOTES ~~taxes~~TO inTHE ~~accordance~~CONSOLIDATED ~~with~~FINANCIAL ~~FASB~~STATEMENTS ASC 740, “Income Taxes” (“ASC 740”), which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate principally to the undistributed earnings of the Company’s subsidiary under PRC law. Deferred tax assets and liabilities represent the future tax consequences for those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses that are available to offset future taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Zhongxian Information is subject to the tax rate of 25% for the earnings when distributed by Xinhua Cattle and Yulong. At June 30, 2015 and 2014, undistributed earnings allocated to Zhongxian Information were approximately $160,600,000 and $117,000,000, respectively.

~~ASC 740 addresses the~~FOR ~~determination~~THE ofYEARS ~~whether~~ended ~~tax~~JUNE ~~benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740~~30, ~~the~~2016 ~~Company~~AND ~~may~~2015 ~~recognize~~(IN the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the positionU. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlementS. ~~ASC~~$) 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with uncertain tax positions. As of June 30, 2015 and 2014, the Company does not have a liability for any uncertain tax positions.

~~F-21~~2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

~~China~~Biological ~~Modern~~Assets ~~Agricultural Information, Inc.~~ (continued)

The Company reviews the carrying value of its biological assets for impairment at least annually or whenever events and circumstances ~~subsidiaries~~indicate that their carrying value may not be recoverable from the estimated future cash flows expected from their use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss will be recognized equal to an amount by which the carrying value exceeds the fair value of the asset. The factors considered by management in performing this assessment include current health status and production capacity. There were no impairment losses recorded during the years ended June 30, 2016 and 2015.

~~NOTES~~Income ~~TO THE CONSOLIDATED FINANCIAL STATEMENTS~~ Taxes

~~FOR~~The ~~THE~~Company ~~FISCAL~~accounts ~~YEARS~~for ~~ended~~income ~~JUNE~~taxes 30in accordance with FASB ASC 740, ~~2015~~“Income ~~AND~~Taxes” ~~2014~~ (IN“ASC U740”), which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes.S The differences relate principally to the undistributed earnings of the Company’s subsidiary under PRC law. Deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses that are available to offset future taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. At June 30, 2016 and 2015, undistributed earnings allocated to Zhongxian Information were approximately $)192,800,000 and $160,600,000, respectively.

~~2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)~~F-24

~~Income~~China Modern ~~Taxes~~Agricultural ~~(Continued)~~Information, Inc.

~~The income tax laws of various jurisdictions in which the Company~~ and ~~its~~ subsidiaries ~~operate are summarized as follows:~~

~~United~~NOTES TO ~~States~~THE CONSOLIDATED FINANCIAL STATEMENTS

~~The Company is subject to United~~FOR ~~States~~THE ~~tax~~YEARS atended ~~graduated~~JUNE ~~rates~~30, ~~from~~2016 ~~15%~~AND to2015 ~~35%.~~(IN ~~No provision for income tax in the United States has been made as the Company had no~~ U.S. ~~taxable~~$) ~~income for the fiscal years ended June 30, 2015 and 2014.~~

~~BVI~~2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

~~Value Development is incorporated~~Income inTaxes ~~the BVI and is governed by the income tax laws of the BVI. According to current BVI income tax law, the applicable income tax rate for the Company is 0%.~~(Continued)

~~Hong~~ASC 740 ~~Kong~~addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with uncertain tax positions. As of June 30, 2016 and 2015, the Company does not have a liability for any uncertain tax positions.

~~Value Development Group Limited~~The ~~is incorporated in Hong Kong. Pursuant to the~~ income tax laws of ~~Hong~~various ~~Kong,~~jurisdictions in which the Company isand ~~not~~its ~~subject~~subsidiaries tooperate ~~tax~~are onsummarized ~~non-Hong~~as ~~Kong source income.~~follows:

~~PRC~~United States

~~Xinhua~~The Company ~~Cattle~~is ~~and~~subject ~~Yulong are entitled~~ to aUnited States tax ~~exemption~~at ~~for~~graduated ~~the~~rates ~~full~~from ~~Enterprise~~15% ~~Income~~to ~~Tax~~35%. inNo ~~China~~provision ~~due~~for toincome ~~a government~~ tax ~~preferential~~in ~~policy for~~ the ~~dairy~~United ~~farming~~States has ~~industry.~~been ~~Zhongxian~~made ~~Information~~as isthe ~~subject~~Company tohad anno ~~Enterprise~~U.S. ~~Income~~taxable ~~Tax~~income atfor ~~25%~~the ~~and~~years ~~files~~ended ~~its~~June ~~own~~30, ~~tax~~2016 ~~return~~and 2015.

~~F-22~~BVI

~~China~~Value ~~Modern~~Development ~~Agricultural~~and ~~Information,~~Hope ~~Inc~~Diary are incorporated in the BVI and is governed by the income tax laws of the BVI. According to current BVI income tax law, the applicable income tax rate for the Company is 0%.

~~and~~Hong ~~subsidiaries~~Kong

~~NOTES~~Value TODevelopment ~~THE~~Group ~~CONSOLIDATED~~Limited ~~FINANCIAL~~and ~~STATEMENTS~~China Dairy are incorporated in Hong Kong. Pursuant to the income tax laws of Hong Kong, the Company is not subject to tax on non-Hong Kong source income.

~~FOR THE FISCAL YEARS ended JUNE 30, 2015 AND 2014 (IN U.S. $)~~F-25

2.China Modern ~~SUMMARY~~Agricultural OFInformation, ~~SIGNIFICANT~~Inc. ~~ACCOUNTING POLICIES (CONTINUED)~~

~~Net Income (Loss) Per Share~~and subsidiaries

~~The Company computes net income~~NOTES ~~(loss)~~TO ~~per~~THE ~~common~~CONSOLIDATED ~~share~~FINANCIAL inSTATEMENTS accordance with FASB ASC 260, “Earnings Per Share” (“ASC 260”). Under the provisions of ASC 260, basic net income (loss) per common share is computed by dividing the amount available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted income per common share is computed by dividing the amount available to common stockholders by the weighted average number of shares of common stock outstanding plus the effect of any dilutive shares outstanding during the period. Accordingly, the number of weighted average shares outstanding as well as the amount of net income per share are presented for basic and diluted per share calculations for all periods reflected in the accompanying consolidated statements of income and other comprehensive income. There were no dilutive shares outstanding during the fiscal years ended June 30, 2015 and 2014.

~~Statutory~~FOR THE ~~Reserve~~YEARS ~~Fund~~ended JUNE 30, 2016 AND 2015 (IN U.S. $)

Pursuant to corporate law of the PRC, Jiasheng Consulting and the Company’s Chinese VIE and its subsidiaries are required to transfer 10% of their net income, as determined under PRC accounting rules and regulations, to a statutory reserve fund until such reserve balance reaches 50% of its registered capital2. ~~The~~SUMMARY ~~statutory~~OF ~~reserve~~SIGNIFICANT ~~fund~~ACCOUNTING isPOLICIES non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or used to increase registered capital, provided that the remaining reserve balance after such use is not less than 25% of the registered capital. As of June 30, 2015 and 2014, the required statutory reserve funds have been fully funded.(CONTINUED)

3.Income Taxes ~~Recently Issued Accounting Standards~~(Continued)

In March 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU 2015-03 – Interest – Imputation of Interest (Subtopic 835-30). This ASU addressed the simplification of debt issuance costs presentation by presenting debt issuance costs in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements.PRC

~~F-23~~Xinhua Cattle and Yulong are entitled to a tax exemption for the full Enterprise Income Tax in China due to a government tax preferential policy for the dairy farming industry. In January 2015, Zhongxian Information obtained an income tax exemption notice from the tax authority to exempt the income tax on its investment income from its subsidiaries Xinhua Cattle and Yulong.

~~China~~Net ~~Modern~~Income ~~Agricultural~~(Loss) ~~Information,~~Per ~~Inc.~~ Share

The Company computes net income (loss) per common share in accordance with FASB ASC 260, “Earnings Per Share” (“ASC 260”). Under the provisions of ASC 260, basic net income (loss) per common share is computed by dividing the amount available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted income per common share is computed by dividing the amount available to common stockholders by the weighted average number of shares of common stock outstanding plus the effect of any dilutive shares outstanding during the period. Accordingly, the number of weighted average shares outstanding as well as the amount of net income per share are presented for basic and diluted per share calculations ~~subsidiaries~~for all periods reflected in the accompanying consolidated statements of income and other comprehensive income. There were no dilutive shares outstanding during the years ended June 30, 2016 and 2015.

~~NOTES~~Statutory TOReserve ~~THE CONSOLIDATED FINANCIAL STATEMENTS~~ Fund

~~FOR~~Pursuant ~~THE~~to ~~FISCAL~~the ~~YEARS~~corporate ~~ended~~law ~~JUNE~~of 30the PRC, ~~2015~~Jiasheng ~~AND~~Consulting ~~2014~~and the Company’s Chinese VIE and its subsidiaries are required to ~~(IN~~transfer U10% of their net income, as determined under PRC accounting rules and regulations, to a statutory reserve fund until such reserve balance reaches 50% of its registered capital.S The statutory reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or used to increase registered capital, provided that the remaining reserve balance after such use is not less than 25% of the registered capital. $)As of June 30, 2016 and 2015, the required statutory reserve funds have been fully funded.

~~3. Recently Issued Accounting Standards (CONTINUED)~~F-26

~~In January 2015, the Financial Accounting~~China ~~Standards~~Modern ~~Board~~Agricultural ("FASB") issued Accounting Standards Update ("ASU") ASU 2015-01 – Income Statement – Extraordinary and Unusual Items (Subtopic 225-20). This ASU addressed the simplification of income statement presentation by eliminating the concept of extraordinary items. The objective of the Simplification Initiative is to identifyInformation, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statementsInc. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued authoritative guidance that requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and ~~requires additional~~ disclosures if certain criteria are met. This guidance is effective for fiscal periods ending after December 15, 2016, with early adoption permitted. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements.subsidiaries

~~In June 2014, the FASB issued Accounting~~NOTES ~~Standards~~TO ~~Update~~THE ~~No.~~CONSOLIDATED ~~2014-12,~~FINANCIAL ~~Accounting~~STATEMENTS for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (ASU 2014-12). ASU 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification (ASC) 718, Compensation—Stock Compensation, as it relates to such awards. ASU 2014-12 is effective for us in our first quarter of fiscal 2017 with early adoption permitted using either of two methods: (i) prospective to all awards granted or modified after the effective date; or (ii) retrospective to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter, with the cumulative effect of applying ASU 2014-12 as an adjustment to the opening retained earnings balance as of the beginning of the earliest annual period presented in the financial statements. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements.

~~F-24~~FOR THE YEARS ended JUNE 30, 2016 AND 2015 (IN U.S. $)

~~China Modern~~3. ~~Agricultural~~Recently ~~Information,~~Issued ~~Inc.~~Accounting Standards

In April 2016, the FASB issued Accounting Standards Update No. 2016-12, Revenue from Contracts with Customers. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606).'' This guidance supersedes current guidance on revenue recognition in Topic 605, "Revenue Recognition.'' In addition, there are disclosure requirements related to the nature, amount, timing, and uncertainty of revenue recognition. In August 2015, the FASB issued ASU No.2015-14 to ~~subsidiaries~~defer the effective date of ASU No. 2014-09 for all entities by one year. For public business entities that follow U.S. GAAP, the deferral results in the new revenue standard are being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements.

~~NOTES~~In February 2016, the FASB TOissued ~~THE~~Accounting ~~CONSOLIDATED~~Standards ~~FINANCIAL~~Update ~~STATEMENTS~~No. 2016-02, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. This accounting standard update is not expected to have a material impact on the Company’s financial statements.

~~FOR~~In ~~THE~~January ~~FISCAL~~2016, ~~YEARS~~the ~~ended~~FASB ~~JUNE~~issued 30ASU No. 2016-01, Financial ~~2015~~Instruments ~~AND~~- ~~2014~~ Overall (INSubtopic U825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.S The updated guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The $)update to the standard is effective for the Company beginning June 1, 2018. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements.

~~3. Recently Issued Accounting Standards (CONTINUED)~~F-27

~~In May 2014, the FASB issued ASU~~China ~~No.~~Modern ~~2014-09,~~Agricultural ~~“Revenue from Contracts with Customers”~~Information, ~~which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition”~~Inc. The core principle of this updated guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new rule also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The FASB has recently extended the effective date for one year. Companies are permitted to adopt this new rule following either a full or modified retrospective approach. Early adoption is not permitted. The Company has not yet determined the potential impact of this updated authoritative guidance on its consolidated financial statements.

~~4. Property, plant~~ and ~~equipment~~ subsidiaries

~~Property,~~NOTES TO ~~plant~~THE ~~and~~CONSOLIDATED ~~equipment~~FINANCIAL ~~are summarized~~STATEMENTS ~~as follows:~~

	June 30, 2015			June 30, 2014
Machinery and equipment	$	2,202,907		$	410,304
Automobiles		2,071,656			105,163
Building and building improvements		4,265,743			4,244,832
		8,540,306			4,760,299
Less: accumulated depreciation		(1,590,004	)		(1,274,392	)
Property, plant and equipment, net	$	6,950,302		$	3,485,907

FOR THE YEARS ended JUNE 30, 2016 AND 2015 (IN U.S. $)

~~Depreciation~~3. ~~expense~~Recently ~~charged~~Issued ~~to operations~~Accounting ~~for~~Standards ~~the fiscal years ended June 30, 2015 and 2014 were $339,274 and $299,386, respectively.~~(CONTINUED)

FIn September 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-2516: Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”), which eliminates the requirement to restate prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. ASU 2015-16 is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements.

~~China~~In ~~Modern~~August ~~Agricultural~~2015, ~~Information~~the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-14, ~~Inc~~Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendment is effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is evaluating the impact of this standard on its Consolidated Financial Statements.

In May 2015, the FASB issued ASU No. 2015-09, “Financial Services-Insurance (Topic 944): Disclosures about Short-Duration Contracts.” This guidance requires insurance entities to disclose for annual reporting periods incurred and paid claims development information ~~subsidiaries~~by accident year, after reinsurance, for the number of years for which claims typically remain open. Disclosures should also include quantitative information about claim frequency and a qualitative description of methodologies used for determining claim frequency information. This guidance is effective for annual reporting periods, including interim periods, beginning after December 15, 2015, and is applicable to the Company's fiscal year beginning June 1, 2016. Early and retrospective application is permitted. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements.

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~ F-28

~~FOR~~China ~~THE~~Modern ~~FISCAL~~Agricultural ~~YEARS ended JUNE 30~~Information, ~~2015 AND 2014 (IN U~~Inc.S. $)

~~5. Biological assets~~and subsidiaries

~~Biological~~NOTES ~~assets~~TO ~~consist~~THE ofCONSOLIDATED ~~the~~FINANCIAL ~~following:~~STATEMENTS

	June 30, 2015			June 30, 2014
Immature biological assets	$	24,555,303		$	18,506,045
Mature biological assets		18,271,485			18,313,125
		42,826,788			36,819,170
Less: accumulated depreciation		(4,223,202	)		(4,530,777	)
Biological assets, net	$	38,603,586		$	32,288,393

FOR THE YEARS ended JUNE 30, 2016 AND 2015 (IN U.S. $)

Depreciation expense for fiscal years ended June 30, 2015 and 2014 was $1,961,300 and $1,947,156, respectively, all of which was included in cost of goods sold in the consolidated statements of income and other comprehensive income3. ~~The~~Recently ~~decrease~~Issued ofAccounting ~~accumulated~~Standards ~~depreciation is due to the disposal of cows in November and December, 2014.~~(CONTINUED)

6In May 2015, the FASB issued ASU No. ~~Notes~~2015-07, ~~Receivable~~“Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (a consensus of the FASB Emerging Issues Task Force).” This guidance removes the requirement to categorize within the fair value hierarchy investments for which fair value is measured using the net asset value per share practical expedient and removes certain related disclosure requirements. This guidance is effective for annual reporting periods, including interim periods, beginning after December 15, 2015, and is applicable to the Company's fiscal year beginning June 1, 2016. Early adoption is permitted. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements.

~~Notes~~In April ~~receivable~~2015, ~~are~~the ~~related~~FASB toissued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This guidance clarifies the ~~sales~~accounting treatment for fees paid in cloud computing arrangements, including the determination of ~~cows~~whether ~~(mature~~a ~~biological~~cloud ~~assets)~~computing arrangement includes a software license. This guidance is effective for annual reporting periods, including interim periods, beginning after December 15, 2015, and is applicable to ~~local~~the ~~farmers~~Company's fiscal year beginning June 1, 2016. Early adoption is permitted. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements.

In April ~~September 2011~~2015, ~~August~~the ~~2011~~FASB issued ASU No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation ~~and~~of ~~June~~Debt ~~2011,~~Issuance ~~Xinhua~~Costs.” ~~Cattle~~This ~~sold~~Guidance 3requires debt issuance costs to be presented in the balance sheet as a reduction of the related debt liability rather than an asset. This guidance is effective for annual reporting periods,~~787~~ including interim periods, 5beginning after December 15,~~635~~ 2015, and 2is applicable to the Company's fiscal year beginning June 1,~~000~~ of2016. ~~its~~Early ~~cows~~adoption is permitted for financial statements not previously issued. This accounting standard update is not expected to ~~local~~have ~~farmers,~~a ~~respectively~~material impact on the Company’s consolidated financial statements.

In November and December 2014, Yulong sold 3,714 and 2,955 cows to local farmers respectively. 3,500 of the cows sold were purchased from outside parties for $4,550,000. The remaining cows sold were raised by Yulong.F-29

~~According to the agreements~~China ~~signed~~Modern ~~with~~Agricultural ~~the local farmers in June 2011~~Information, ~~the sales price will be collected over five years, with a minimum payment of 20% of the sales price to be paid each year~~Inc. The related receivable is recorded at its present value at a discount rate of 12%, which is commensurate with interest rates for notes with similar risk. The Company also entered into agreements with these local farmers for a 30% commission of their monthly milk sales generated by the cows sold in exchange for the Company’s assistance in arranging for the sale of the milk.

~~F-26~~and subsidiaries

~~China~~NOTES ~~Modern~~TO ~~Agricultural~~THE ~~Information,~~CONSOLIDATED ~~Inc.~~FINANCIAL STATEMENTS

~~and~~FOR ~~subsidiaries~~THE YEARS ended JUNE 30, 2016 AND 2015 (IN U.S. $)

~~NOTES TO~~4. ~~THE~~Property, ~~CONSOLIDATED~~plant ~~FINANCIAL~~and ~~STATEMENTS~~ equipment

~~FOR~~Property, ~~THE~~plant ~~FISCAL~~and ~~YEARS~~equipment ~~ended~~are ~~JUNE~~summarized ~~30,~~as ~~2015~~follows: ~~AND 2014 (IN U.S. $)~~

6. Notes Receivable (CONTINUED)

	June 30, 2016			June 30, 2015

Machinery and equipment	$	3,866,619		$	222,147
Automobiles		2,253,832			2,071,656
Building and building improvements		26,865,993			6,246,503

		32,986,444			8,540,306
Less: accumulated depreciation		(3,354,779	)		(1,590,004	)
Construction in process		4,696,092			-

Property, plant and equipment, net	$	34,327,757		$	6,950,302

~~Pursuant~~The increase towas the ~~agreements~~office ~~signed in August 2011~~buildings, ~~September 2011~~cow-houses, ~~November 2014,~~ and ~~December~~forage ~~2014,~~storage ~~the~~built ~~sales~~and ~~price~~refurbished ~~will be collected in monthly installments plus interest at 7%~~ on the ~~outstanding~~new ~~balance~~land, ~~over the remaining useful lives of the cows,~~ which ~~range~~are ~~from one to eight years. Local~~completed ~~farmers~~and ~~are~~in ~~required~~service tobefore ~~pay~~June a 30%, of2016. ~~monthly~~Construction ~~milk~~in ~~sales~~Progress ~~generated from~~ (the ~~cows~~“CIP”) ~~purchased~~contains byamount ~~the~~paid ~~farmers.~~and ~~The~~accrued ~~30%~~for completed ~~monthly~~new ~~payments are~~construction tobut behas ~~applied~~not ~~first~~been toplaced ~~the~~into ~~monthly~~service ~~installment~~as of ~~principal~~June ~~for~~30, ~~the~~2016. ~~cows~~No ~~sold~~depreciation ~~and~~on ~~the~~those ~~balance~~CIP as ~~commission~~of ~~income for the~~June ~~Company’s~~30, ~~assistance~~2016. inIn ~~arranging~~addition, ~~for~~a ~~the~~significant ~~sale~~amount of ~~the~~production ~~milk.~~facilities ~~The~~and ~~30%~~automobiles ~~monthly~~were ~~payments~~purchased. ~~will~~Depreciation ~~continue over the entire remaining~~expense ~~life~~charged ~~of the cows sold. While the 30% rate and the amount applied~~ to ~~monthly~~operations ~~installments~~ for the ~~purchase~~years ~~price~~ended ofJune ~~the cows remain the same~~30, ~~the~~2016 ~~amount~~and of2015 ~~sales~~were ~~commission~~$1,950,157 ~~income will vary depending on total monthly milk sales~~ and ~~the~~$339,274, ~~progress of repayments towards the purchase price~~respectively.

~~During~~On ~~the~~January ~~fiscal~~20, ~~years~~2016, ~~ended~~the ~~June~~Company ~~30,~~signed ~~2015~~an ~~and~~agreement ~~2014~~with Harbin Donghui Architecture Co., ~~the~~Ltd ~~Company~~to ~~received~~construct ~~principal~~a ~~and~~new ~~interest~~forage ~~payments~~production ofplant. $2The total agreement amount is RMB 45,~~681~~615,~~845~~000 ~~and~~(US $1 6,~~982~~864,~~139~~237). Per the agreement, ~~respectively.~~the ~~Commission income~~company is required to pay according to progress completion for different parts at the ~~fiscal~~plant. ~~years~~As ~~ended~~of June 30, ~~2015~~2016, ~~and~~the ~~2014~~company paid RMB 28,321,000 ~~was~~(US $17 4,~~893~~261,~~661~~801) and ~~$10~~committed to pay RMB 17,~~022~~294,~~286,~~000 ~~respectively~~(US $ 2,602,436) ~~under~~after ~~these~~the ~~agreements~~construction is completed.

~~The receivable related to the sales of cows is included in notes receivable in the consolidated balance sheets as of June~~ F-30~~, 2015 and 2014. The related commission receivable of $3,408,759 and $989,792 at June 30, 2015 and 2014, respectively, is included in accounts receivable in the consolidated balance sheets.~~

~~Notes~~China Modern ~~receivable~~Agricultural ~~at June 30~~Information, ~~2015 and~~Inc. ~~2014 consists of the following:~~

	June 30, 2015			June 30, 2014
Notes receivable	$	9,873,474		$	6,114,346
Less: discount for interest		(41,966	)		(120,806	)
		9,831,508			5,993,540
Less: current portion		(2,739,302	)		(1,863,092	)
Non-current portion	$	7,092,206		$	4,130,448

and subsidiaries

~~F-27~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

~~China~~FOR ~~Modern~~THE ~~Agricultural~~YEARS ~~Information~~ended JUNE 30, ~~Inc~~2016 AND 2015 (IN U.S. $)

~~and subsidiaries~~5. Biological assets

~~NOTES~~Biological TOassets ~~THE~~consist ~~CONSOLIDATED~~of ~~FINANCIAL~~the ~~STATEMENTS~~ following:

FOR THE FISCAL YEARS ended JUNE 30, 2015 AND 2014 (IN U.S. $)

	June 30, 2016			June 30, 2015

Immature biological assets	$	32,518,050		$	24,555,303
Mature biological assets		36,660,416			18,271,485

		69,178,466			42,826,788
Less: accumulated depreciation		(5,041,615	)		(4,223,202	)

Biological assets, net	$	64,136,851		$	38,603,586

6In July 2015, Xinhua Cattle and Yulong purchased 2,000 and 2,300 adult cows, respectively at a price RMB 8,500 (US $1,321) per cow from an outside party. ~~Notes~~In ~~Receivable~~February and April 2016, Xinhua Cattle purchased 2,000 adult cows, respectively, at a price RMB 16,000 (~~CONTINUED~~US $2,486) per cow from an outside party.

~~Future~~In ~~maturities~~August 2015, Xinhua Cattle sold 200 cows to an outside party at a total price of ~~notes~~RMB ~~receivable~~160,000(US $24,861) including insurance of RMB 100,000 (US $ 15,540). The cows had a net book value of approximately $43,000 as of ~~June~~the 30disposal date, ~~2015~~which ~~are~~includes cost basis approximately $560,000 and accumulated depreciation of approximately $516,000. In May 2016, Xinhua Cattle sold 904 cows to an outside party at a total price of RMB 3,616,000(US $561,854). The cows had a net book value approximately $564,000 as ~~follows:~~of the disposal date, which includes cost basis approximately $1,147,000 and accumulated depreciation approximately $583,000. In June 2016, Xinhua Cattle also sold 500 female calves to an outside party at a total price of RMB 2,000,000 (US $310,760). The cost of these female calves was approximate $322,000.

Fiscal year Ending June 30,
2016	$	2,739,000
2017		2,084,000
2018		1,713,000
2019		1,198,000
2020		595,000
Thereafter		1,503,000
	$	9,832,000

In November 2015, Yulong Cattle sold 347 cows to an outside party at a total price of RMB 1,144,800 (US $177,879) including insurance of RMB 104,100 (US $ 16,175). The cows had a net book value of approximately $254,000 as of the disposal date, which includes cost basis approximately $588,000 and accumulated depreciation approximately $335,000. In May 2016, Yulong Cattle sold 331 cows to an outside party at a total price of RMB 1,390,200 (US $216,009). The cows had a net book value approximately $324,000 as of the disposal date, which includes cost basis approximately $709,000 and accumulated depreciation approximately $385,000.

The Company considers these notes to be fully collectible and, therefore, did not provide an allowance for doubtful accounts. The Company will continue to review the notes receivable on a periodic basis and where there is doubt as to the collectability of individual balances, it will provide an allowance, if necessary.F-31

7China Modern Agricultural Information, Inc. ~~LeaseS~~

~~The Company leases an office at~~and no cost from an unrelated third party. On September 1, 2010, the Company entered into an operating lease agreement expiring on August 31, 2015. The lease agreement does not provide for payment of rent. subsidiaries

~~All land in China is government~~NOTES ~~owned~~TO ~~and~~THE ~~cannot~~CONSOLIDATED beFINANCIAL ~~sold~~STATEMENTS to any individual or company. The Company obtained a “land use right” to use a track of land of 250,000 square meters at no cost through December 1, 2015. On May 10, 2013, the Company, however, entered into an agreement with the municipality of Qiqihaer to obtain the “land use right” to use this land from May 1, 2013 to April 30, 2063. The Company recorded the prepayment of RMB 37,500,000 (US$6,060,000) as prepaid land lease. The prepaid lease is being amortized over the land use term of 50 years using the straight-line method. The remaining prepayment of $5,854,800 and $5,947,900 is included in prepaid land lease in the consolidated balance sheets as of June 30, 2015 and 2014, respectively. The lease provides for renewal options.

~~F-28~~FOR THE YEARS ended JUNE 30, 2016 AND 2015 (IN U.S. $)

~~China Modern~~5. ~~Agricultural~~Biological ~~Information,~~assets ~~Inc.~~ (continued)

In December 2015, Xinhua Cattle entered into agreements with 179 local farmers to pay them additional feeding cost of RMB 600 (US$93) for each young cow and adult cow, which were transferred to the farmers for feeding at the beginning of October 2015, for improving ~~subsidiaries~~the feeding environment. The company paid 50% of the total amount RMB 6,795,000 (US$1,056,000) in December 2015 and the remaining 50% was paid in January 2016. 100% of the additional cost for mature cows was included as cost of goods sold as incurred and the remaining are capitalized for immature cows.

~~NOTES~~Depreciation TOexpense ~~THE~~for ~~CONSOLIDATED~~the ~~FINANCIAL~~years ~~STATEMENTS~~ended June 30, 2016 and 2015 was $2,878,298 and $1,961,300, respectively, all of which was included in cost of goods sold in the consolidated statements of income and other comprehensive income.

~~FOR THE FISCAL YEARS ended JUNE 30, 2015 AND 2014 (IN U~~6.S. $)Notes Receivable

7.Notes receivable ~~LeaseS~~are related to sales of cows (~~CONTINUED~~mature biological assets) to local farmers.

OnIn September ~~October 9,~~ 2011, ~~the~~August ~~Company entered into an operating lease~~2011, ~~from~~and ~~October~~June 9, 2011 ~~to October 8~~, ~~2021,~~Xinhua ~~with~~Cattle ~~the~~sold ~~municipality of Heilongjiang to lease 16~~3,~~666~~787,~~750~~ ~~square meters of land. The lease required the Company to prepay the ten year rental of RMB 30~~5,~~000~~635,~~000~~ ~~(US$4,686,000). The~~and ~~related prepayment of $3~~2,~~060,~~000 ~~and $3,532,200 is included in prepaid land lease in the consolidated balance sheets as~~ of ~~June~~its ~~30,~~cows ~~2015~~to ~~and~~local ~~2014~~farmers, respectively. ~~The lease provides~~ ~~for renewal options.~~

OnIn November ~~February~~and ~~25,~~December ~~2013~~2014, ~~the~~Yulong ~~Company obtained~~sold ~~another “land use right” to use 427~~3,~~572~~714 ~~square~~and ~~meters of land~~2,955 ~~from~~cows ~~March 1~~respectively, ~~2013~~ to ~~February~~local ~~28, 2063~~farmers. ~~The Company recorded the prepayment of RMB 77~~3,~~040,000~~500 ~~(US$12,450,000) as prepaid land lease. The prepaid lease is being amortized over the land use term~~ of ~~50 years using~~ the ~~straight-line~~cows ~~method. The~~sold ~~remaining~~were ~~prepayment~~purchased from ofoutside ~~$11,986,191~~parties ~~and~~for $124,~~177~~550,~~662 is~~000. ~~included~~The inremaining ~~prepaid~~cows ~~land~~sold ~~lease~~were inraised ~~the~~by ~~consolidated balance sheets as of June 30, 2015 and 2014, respectively~~Yulong. ~~The lease provides for renewal options.~~

OnAccording to ~~May 7, 2015,~~ the ~~Company~~agreements ~~obtained another~~signed ~~“land~~with ~~use~~the ~~right”~~local tofarmers ~~use~~in ~~238,001~~June ~~square meters of land~~2011, ~~from~~the ~~May~~sales 7,price ~~2015~~will tobe ~~May~~collected 6,over ~~2045.~~five ~~In addition~~years, ~~the~~with ~~Company~~a minimum ~~also~~payment ~~leased~~of ~~all~~20% ~~the~~of ~~constructions on~~ the ~~land~~sales ~~which~~price ~~includes~~to ~~cowsheds~~be atpaid ~~35,808~~each ~~square~~year. ~~meters~~The onrelated ~~top~~receivable ofis ~~the~~recorded ~~land~~at ~~leased,~~its anpresent ~~office building~~value at ~~3,500 square meters and~~ a ~~flat~~discount rate ~~building~~of ~~at 3~~12%,~~500~~ ~~square~~which ~~meters.~~is ~~The~~commensurate ~~lease~~with ~~period~~interest ofrates ~~all~~for ~~these~~notes ~~constructions~~with issimilar ~~the same as the land~~risk. The Company ~~recorded~~also ~~the~~entered ~~prepayment~~into ofagreements ~~RMB~~with these ~~74,847,600~~local ~~(US$12,215,000)~~farmers asfor ~~prepaid~~a ~~lease.~~30% ~~The~~commission ~~prepaid~~of ~~lease~~their ~~is being~~monthly ~~amortized~~milk ~~over~~sales ~~the~~generated ~~lease~~by ~~term of 30 years using~~ the ~~straight-line~~cows ~~method.~~sold ~~The~~in ~~remaining~~exchange ~~prepayment~~for ofthe ~~$12,147,266 is included~~Company’s assistance in ~~prepaid~~arranging ~~lease~~for in the ~~consolidated~~sale ~~balance sheets as~~ of ~~June~~the ~~30, 2015~~milk.

On May 14, 2015, the Company obtained another “land use right” to use 283,335 square meters of land, from May 14, 2015 to May 13, 2045. In addition, the Company also leased all the constructions on the land which includes cowsheds at 42,100 square meters, an office building at 3,000 square meters and a flat building at 3,000 square meters. The lease period of all these constructions is the same as the land. The Company recorded the prepayment of RMB 111,887,500 (US$18,260,000) as prepaid lease. The prepaid lease is being amortized over the lease term of 30 years using the straightF-~~line method. The remaining prepayment of $18,158,595 is included in prepaid lease in the consolidated balance sheets as of June 30, 2015.~~32

~~Rent expense charged to operations~~China ~~for~~Modern ~~the~~Agricultural ~~fiscal years ended June 30~~Information, ~~2015 and 2014 was $1,029,601 and $860,813, respectively~~Inc.

~~F-29~~and subsidiaries

~~China~~NOTES ~~Modern~~TO ~~Agricultural~~THE ~~Information,~~CONSOLIDATED ~~Inc.~~FINANCIAL STATEMENTS

~~and~~FOR ~~subsidiaries~~THE YEARS ended JUNE 30, 2016 AND 2015 (IN U.S. $)

~~NOTES TO~~6. ~~THE~~Notes ~~CONSOLIDATED~~Receivable ~~FINANCIAL STATEMENTS~~ (continued)

~~FOR~~Pursuant ~~THE~~to ~~FISCAL~~the ~~YEARS~~agreements ~~ended~~signed ~~JUNE~~in 30August 2011, ~~2015~~September ~~AND~~2011, November 2014, and December 2014, the sales price will be collected in ~~(IN~~monthly Uinstallments plus interest at 7% on the outstanding balance, over the remaining useful lives of the cows, which range from one to eight years.S Local farmers are required to pay a 30% of monthly milk sales generated from the cows purchased by the farmers. $)The 30% monthly payments are to be applied first to the monthly installment of principal for the cows sold and the balance as commission income for the Company’s assistance in arranging for the sale of the milk. The 30% monthly payments will continue over the entire remaining life of the cows sold. While the 30% rate and the amount applied to monthly installments for the purchase price of the cows remain the same, the amount of sales commission income will vary depending on total monthly milk sales and the progress of repayments towards the purchase price.

8During the years ended June 30, 2016 and 2015, the Company received principal and interest payments of $2,300,347 and $2,681,845, respectively. Commission ~~EMPLOYMENT~~income ~~AGREEMENTS~~for the years ended June 30, 2016 and 2015, was $19,486,432 and $17,893,661, respectively, under these agreements.

The receivable ~~Company~~related ~~had~~to ~~Employment~~the ~~Agreements with~~sales ~~its~~of ~~executive~~cows ~~officers~~is ~~which~~included ~~expired~~ in ~~2015.~~notes ~~The~~receivable ~~Agreements~~in ~~were~~the ~~later~~consolidated ~~renewed~~balance ~~until~~sheets ~~August~~as 31of June 30, 2016 and 2015. ~~For~~The ~~the~~related ~~fiscal~~commission ~~years ended~~receivable of $6,962,080 and $3,408,759 at June 30, ~~2015~~2016 and ~~2014~~2015, ~~compensation~~respectively, ~~under~~is ~~these~~included in ~~agreements~~accounts ~~was~~receivable ~~$33,923~~in ~~and~~the ~~$33,923,~~consolidated ~~respectively~~balance sheets.

AtNotes receivable at June 30, ~~2015,~~2016 ~~the~~and ~~future~~2015 ~~commitment under~~consists ~~these~~of ~~agreements~~the ~~is approximately $71,000.~~following:

9. Related party transactions

	June 30, 2016			June 30, 2015

Notes receivable	$	7,052,255		$	9,873,474
Less: discount for interest		(11,270	)		(41,966	)

		7,040,985			9,831,508
Less: current portion		(2,097,363	)		(2,739,302	)

Non-current portion	$	4,943,622		$	7,092,206

~~The Company obtained demand loans from one of its stockholders which are non~~F-~~interest bearing. The loans of $937,524 and $656,995 as of June 30, 2015 and 2014, respectively, are reflected as stockholder loans in the consolidated balance sheets.~~33

~~10.~~China Modern ~~Income~~Agricultural ~~taxes~~Information, Inc.

~~The~~and ~~provision for income taxes consisted of the following for the fiscal years ended June 30:~~subsidiaries

	2015		2014
Current	$	-	$	-
Deferred		10,968,816		9,446,671
	$	10,968,816	$	9,446,671

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

~~The following table reconciles the~~FOR ~~effective~~THE ~~income~~YEARS ~~tax~~ended ~~rates~~JUNE ~~with~~30, ~~the~~2016 ~~statutory~~AND ~~rates~~2015 ~~for~~(IN ~~the~~U.S. ~~fiscal~~$) ~~years ended June 30:~~

	2015			2014
Statutory rate		25.0	%		25.0	%
Allowance		-			2.02	%
Other		(0.02	%)		(0.96	%)
Effective income tax rate		24.98	%		26.06	%

6.	Notes Receivable (continued)

F-Future maturities of notes receivable as of June 30, 2016 are as follows:

China Modern Agricultural Information, Inc.

Year Ending June 30,

2017	$	2,097,000
2018		1,621,000
2019		1,319,000
2020		618,000
2021		527,000
Thereafter		859,000

	$	7,041,000

The Company considers these notes to be fully collectible and, therefore, did not provide an allowance for doubtful accounts. The ~~subsidiaries~~Company will continue to review the notes receivable on a periodic basis and where there is doubt as to the collectability of individual balances, it will provide an allowance, if necessary.

~~NOTES TO~~7. ~~THE CONSOLIDATED FINANCIAL STATEMENTS~~ LeaseS

~~FOR~~All ~~THE~~land ~~FISCAL~~in ~~YEARS~~China ~~ended~~is ~~JUNE~~government 30owned and cannot be sold to any individual or company. The Company obtained a “land use right” to use a track of land of 250,000 square meters at no cost through December 1, 2015. ~~AND~~On ~~2014~~May 10, 2013, the Company, however, entered into an agreement with the municipality of Qiqihaer to obtain the “land use right” to use this land from May 1, 2013 to April 30, 2063. The Company recorded the prepayment of RMB 37,500,000 (INUS$6,060,000) Uas prepaid land lease.S The prepaid lease is being amortized over the land use term of 50 years using the straight-line method. The remaining prepayment of $)5,285,680 and $5,854,800 is included in prepaid land lease in the consolidated balance sheets as of June 30, 2016 and 2015, respectively. The lease provides for renewal options.

10On October 9, 2011, the Company entered into an operating lease, from October 9, 2011 to October 8, 2021, with the municipality of Heilongjiang to lease 16,666,750 square meters of land. ~~Income~~The ~~taxes~~lease ~~(CONTINUED)~~required the Company to prepay the ten year rental of RMB 30,000,000

Deferred tax assets and liabilities are recognized for expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effects for the year in which the differences are expected to reverse.F-34

~~The tax laws of~~ China ~~permit the~~ ~~carry~~Modern ~~forward~~Agricultural ofInformation, ~~net operating losses for a period of five years~~Inc. Undistributed earnings from Xinhua Cattle and Yulong are not taxable until such earnings are actually distributed to Jiasheng Consulting. A deferred tax liability was provided for the tax to be paid when these earnings are distributed.

~~Deferred tax assets (liabilities)~~and ~~are comprised of the following:~~ subsidiaries

	June 30, 2015			June 30, 2014
Net operating loss carryforwards	$	458,947		$	434,844
Bargain purchase gain		(1,430,399	)		(1,430,399	)
Undistributed earnings of subsidiaries under PRC law		(40,376,234	)		(29,222,709	)
		(41,347,686	)		(30,218,264	)
Less valuation allowance		(458,947	)		(434,844	)
Net deferred tax (liabilities)	$	(41,806,633	)	$	(30,653,108	)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

~~At June 30 2015 and 2014, Zhongxian~~FOR ~~Information~~THE ~~had~~YEARS ~~unused~~ended ~~operating~~JUNE ~~loss carry-forwards of approximately $1~~30,~~836,000~~ ~~and~~2016 ~~$1,739,000,~~AND ~~respectively,~~2015 ~~expiring~~(IN ~~in various years through 2019~~U.S. ~~The Company has established a valuation allowance of approximately~~ $~~460,000~~) ~~and $430,000 against the deferred tax asset related to the net operating loss carry forward at June 30, 2015 and 2014, due to the uncertainty of realizing the benefit.~~

~~The Company’s tax filings are subject to examination by the tax authorities~~7. ~~The~~ ~~tax~~LeaseS years from 2009 to 2014 remain open to examination by tax authorities in the PRC. The Company’s U.S. tax returns are subject to examination by the tax authorities for tax years 2012 and 2014. The year ended June 30, 2013 was examined by the Internal Revenue Service and resulted in no adjustment.(CONTINUED)

~~F-31~~(US $4,686,000). The related prepayment of $2,370,092 and $3,060,000 is included in prepaid land lease in the consolidated balance sheets as of June 30, 2016 and 2015, respectively. The lease provides for renewal options.

~~China~~On February 25, 2013, the ~~Modern~~Company ~~Agricultural~~obtained ~~Information~~another “land use right” to use 427,572 ~~Inc~~square meters of land, from March 1, 2013 to February 28, 2063. The Company recorded the prepayment of RMB 77,040,000 (US $12,450,000) as prepaid land lease. The prepaid lease is being amortized over the land use term of 50 years using the straight-line method. The remaining prepayment of $10,820,258 and $11,986,191 is included in prepaid land lease in the consolidated balance sheets as of June 30, 2016 and 2015, respectively. The lease provides for renewal options.

The Company leases an office at no cost from an unrelated third party. On September 1, 2010, the Company entered into an operating lease agreement expiring on August 31, 2015. The lease agreement does not provide for payment of rent and it was not subsequently ~~subsidiaries~~renewed.

~~NOTES~~On May 14, 2015, the Company TOobtained ~~THE~~another ~~CONSOLIDATED~~“land ~~FINANCIAL~~use ~~STATEMENTS~~right” to use 283,335 square meters of land, from May 14, 2015 to May 13, 2045. In addition, the Company also leased all the constructions on the land which includes cowsheds at 42,100 square meters, an office building at 3,000 square meters and a flat building at 3,000 square meters. The lease period of all these constructions is the same as the land. The Company recorded the prepayment of RMB 111,887,500 (US $18,260,000) as prepaid lease. The prepaid lease is being amortized over the lease term of 30 years using the straight-line method. The remaining prepayment of $16,182,280 and $18,158,595 is included in prepaid lease in the consolidated balance sheets as of June 30, 2016 and 2015, respectively.

~~FOR~~Rent ~~THE~~expense ~~FISCAL~~charged ~~YEARS~~to operations for the years ended ~~JUNE~~June 30, 2016 and 2015 ~~AND~~was ~~2014 (IN~~$1,789,248 ~~U.S.~~and $)1,029,601, respectively.

118. ~~CONCENTRATION~~EMPLOYMENT ~~OF CREDIT RISK~~AGREEMENTS

~~Substantially~~The ~~all~~Company ofhad ~~the Company’s~~Employment ~~bank~~Agreements ~~accounts~~with ~~are~~its ~~located~~executive inofficers ~~The~~and ~~People’s~~directors ~~Republic~~for ofa ~~China~~one ~~and~~year ~~are~~period ~~not~~with ~~covered~~renewal byoptions ~~protection~~after ~~similar~~expiration, towith ~~that~~the ~~provided by~~current agreements expiring in June and August, 2017. For the ~~FDIC~~years onended ~~funds~~June ~~held~~30, in2016 ~~United~~and ~~States~~2015, ~~banks.~~compensation under these agreements was $187, 000 and $33,923, respectively.

~~Five~~At ~~customers accounted for approximately 100% of milk sales for the fiscal years ended~~ June 30, ~~2015~~2016, ~~and~~the ~~2014. The same four and five customers also accounted for approximately~~future ~~48%~~commitment ~~and~~under ~~79%~~these ofagreements ~~accounts~~is ~~receivable~~approximate ~~at June 30~~$283, ~~2015 and 2014, respectively~~000.

~~Seventy six farmers and Thirty nine famers accounted for the notes receivable at June 30, 2015 and 2014, respectively.~~F-35

~~12.~~China Modern ~~Parent~~Agricultural ~~company~~Information, ~~only~~Inc. ~~condensed financial information~~

~~The following is the condensed financial information of China Modern Agricultural Information, Inc. only, the US parent, balance sheets as of June 30, 2015~~ and ~~2014, statements~~ ~~of income for the fiscal years ended June 30, 2015 and 2014, and statements of cash flows for the fiscal years ended June 30, 2015 and 2014:~~subsidiaries

~~Condensed~~NOTES TO ~~Balance~~THE ~~Sheets~~CONSOLIDATED FINANCIAL STATEMENTS

ASSETS	June 30, 2015		June 30, 2014
Investment in subsidiaries and VIE	$	129,259,501	$	95,871,710
TOTAL ASSETS	$	129,259,501	$	95,871,710

FOR THE YEARS ended JUNE 30, 2016 AND 2015 (IN U.S. $)

~~F-32~~9. Related party transactions

~~China~~In March 2015, Zhongxian Information ~~Modern~~and ~~Agricultural~~the Executive Chairman of the Company entered into a loan agreement pursuant to which Executive Chairman provides a loan facility to Zhongxian Information, ~~Inc~~which is non-interest bearing and due on demand. The maximum amount of the loan is RMB 50,000,000 (US $7,845,000). Any borrowings in excess of this amount may be negotiated between the parties. The loans outstanding were $1,655,744 and $937,524 as of June 30, 2016 and 2015, respectively.

~~and~~In 2012, CMCI issued 9,000,000 shares ~~subsidiaries~~of common stock, par value of $0.001 at $0.34 per share, totaled of RMB 19,428,571 (US $3,060,000) to the shareholder of Yulong on behalf Zhongxian Information for the acquisition of Yulong by Zhongxian Information. The loan was fully paid off by China Dairy to CMCI on June 29, 2016.

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~ F-36

~~FOR~~China ~~THE~~Modern ~~FISCAL~~Agricultural ~~YEARS ended JUNE 30~~Information, ~~2015 AND 2014 (IN U~~Inc.S. $)

~~12. Parent company only condensed financial information (CONTINUED)~~and subsidiaries

~~Condensed~~NOTES TO ~~Balance~~THE ~~Sheets~~CONSOLIDATED ~~(Continued)~~FINANCIAL STATEMENTS

LIABILITIES AND stockholders’ EQUITY	June 30, 2015		June 30, 2014
Stockholder loans	$	937,524	$	656,995
Stockholders’ equity
Common stock, $0.001 par value; 75,000,000 shares authorized; 53,100,000 shares issued and outstanding		53,100		53,100
Additional paid-in capital		5,851,170		5,851,170
Retained earnings		122,417,707		89,310,445
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	129,259,501	$	95,871,710

FOR THE YEARS ended JUNE 30, 2016 AND 2015 (IN U.S. $)

~~Condensed~~10. ~~Statements of~~ Income taxes

	For the fiscal years ended June 30,
	2015		2014
Revenues
Share of earnings from investment in subsidiaries and VIE	$	32,408,267	$	26,382,443
Operating expenses
General and administrative		183,000		138,000
Net income	$	32,225,267	$	26,244,443

The provision for income taxes consisted of the following for the years ended June 30:

F-33

	2016		2015

Current	$	-	$	-
Deferred		2,403,996		10,968,816

	$	2,403,996	$	10,968,816

~~China~~The ~~Modern~~following ~~Agricultural~~table ~~Information,~~reconciles ~~Inc.~~the effective income tax rates with the statutory rates for the years ended June 30:

and subsidiaries

	2016			2015

Statutory rate		25.00	%		25.00	%
Allowance		0.32	%		0.00	%
Other		1176.98	%		(0.02	%)

Effective income tax rate		1202.30	%		24.98	%

~~NOTES~~The TOstock ~~THE~~compensation ~~CONSOLIDATED~~of ~~FINANCIAL~~approximately ~~STATEMENTS~~$37,762,400 would be deductible only to the U.S. parent company and accordingly, there is no deferred tax benefit to be recognized.

~~FOR~~Deferred ~~THE~~tax ~~FISCAL~~assets ~~YEARS~~and ~~ended~~liabilities ~~JUNE~~are ~~30,~~recognized ~~2015~~for ~~AND~~expected ~~2014~~future tax consequences of differences between the carrying amounts of ~~(IN~~assets ~~U.S.~~and $)liabilities and their respective tax bases using enacted tax rates in effects for the year in which the differences are expected to reverse.

~~12. Parent company only condensed financial information (CONTINUED)~~F-37

~~Condensed~~China Modern ~~Statements~~Agricultural ofInformation, ~~Cash~~Inc. ~~Flows (Unaudited)~~

	For the fiscal years ended June 30,
	2015			2014
Cash flows from operating activities
Net income	$	32,225,267		$	26,244,443
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Share of earnings from investment in subsidiaries and VIE		(32,225,267	)		(26,244,443	)
Net cash provided by (used in) operating activities		-			-
Net change in cash		-			-
Cash, beginning of period		-			-
Cash, end of period	$	-		$	-

and subsidiaries

~~Basis~~NOTES TO ofTHE ~~Presentation~~CONSOLIDATED FINANCIAL STATEMENTS

~~The Company records its investment~~FOR inTHE ~~its~~YEARS ~~subsidiaries~~ended ~~and~~JUNE ~~VIE~~30, ~~under~~2016 ~~the~~AND ~~equity~~2015 ~~method~~(IN ~~of accounting~~U.S. ~~Such~~$) investments are presented as “Investment in subsidiaries and VIE” on the condensed balance sheets and the subsidiaries and VIE profits are presented as “Share of earnings from investment in subsidiaries and VIE” in the condensed statements of income.

Certain information and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted10. ~~The~~Income ~~parent~~taxes ~~only financial information has been derived from the Company’s consolidated financial statements and should be read in conjunction with the Company’s consolidated financial statements.~~(continued)

~~There~~The ~~were~~tax nolaws ~~cash~~of ~~transactions in~~China permit the UScarry forward ~~parent~~of ~~company~~net ~~during~~operating ~~the~~losses ~~fiscal~~for a period of five years. ~~ended~~Undistributed ~~June~~earnings 30from Xinhua Cattle and Yulong are not taxable until such earnings are actually distributed to Jiasheng Consulting. A deferred tax liability was provided for the tax to be paid when these earnings are distributed. On September 16, 2015 due to the termination of VIE structure (Note 1), Jiasheng Consulting would not be taxable in the future undistributed earnings from Xinhua Cattle and ~~2014~~Yulong under the Enterprise Income Tax Law that Chinese resident enterprise is an exemption of dividend income received from another Chinese resident enterprise.

~~F-34~~Deferred tax assets (liabilities) are comprised of the following:

China Modern Agricultural Information, Inc.

	June 30, 2016			June 30, 2015

Net operating loss carryforwards	$	497,542		$	458,947
Bargain purchase gain		(1,430,399	)		(1,430,399	)
Undistributed earnings of subsidiaries under PRC law upon VIE structure terminated		(39,446,504	)		(40,376,234	)

		(40,379,361	)		(41,347,686	)
Less valuation allowance		(497,542	)		(458,947	)

Net deferred tax (liabilities)	$	(40,876,903	)	$	(41,806,633	)

At June 30, 2016 and 2015, Zhongxian Information had unused operating loss carry-forwards of approximately $1,990,000 and $1,836,000, ~~subsidiaries~~respectively, expiring in various years through 2020. The Company has established a valuation allowance of approximately $498,000 and $460,000 against the deferred tax asset related to the net operating loss carry forward at June 30, 2016 and 2015, due to the uncertainty of realizing the benefit.

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~ F-38

~~FOR~~China ~~THE~~Modern ~~FISCAL~~Agricultural ~~YEARS ended JUNE 30~~Information, ~~2015 AND 2014 (IN U~~Inc.S. $)

~~12. Parent company only condensed financial information (CONTINUED)~~and subsidiaries

~~Restricted~~NOTES TO ~~Net~~THE ~~Assets~~CONSOLIDATED FINANCIAL STATEMENTS

~~Under~~FOR THE ~~PRC~~YEARS ~~laws~~ended ~~and~~JUNE ~~regulations~~30, ~~the~~ ~~Company’s~~2016 ~~PRC~~AND ~~subsidiaries~~2015 ~~and~~(IN ~~VIE are restricted in their ability to transfer certain of their net assets to the Company in the form of dividend payments, loans or advances~~U.S. ~~The restricted net assets of the Company’s PRC subsidiaries and the VIE amounted to~~ $~~129,259,501~~) ~~and $95,871,710 as of June 30, 2015 and 2014, respectively.~~

~~The Company’s operations and revenues are conducted and generated in the PRC, and all of the Company’s revenues being earned and currency received are denominated in RMB~~10. ~~RMB~~Income istaxes subject to the foreign exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to PRC foreign exchange control regulations that restrict the Company’s ability to convert RMB into US Dollars.(continued)

~~Schedule~~The Company’s Itax offilings ~~Article~~are ~~5-04~~subject ofto ~~Regulation S-X~~examination ~~requires~~by the ~~condensed~~tax ~~financial~~authorities. ~~information~~The oftax ~~the~~years ~~parent~~from ~~company~~2009 to be2015 ~~filed~~remain ~~when~~open ~~the restricted net assets of consolidated~~to ~~subsidiaries~~examination ~~exceed~~by 25tax ~~percent~~authorities ofin ~~consolidated net assets as of~~ the ~~end of the most recently completed fiscal year~~PRC. ~~For~~The ~~purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the~~ Company’s ~~proportionate share~~U.S. oftax ~~net~~returns ~~assets~~are ofsubject ~~consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred~~ to ~~the~~examination ~~parent company~~ by ~~its subsidiaries in~~ the ~~form~~tax ~~of loans, advances or cash dividends without~~authorities ~~the~~for ~~consent~~tax ofyears a2012, ~~third~~2014 ~~party~~and 2015. The ~~condensed~~year ~~parent~~ended ~~company~~June ~~only financial statements have been prepared in accordance with Rule 12-04~~30, ~~Schedule~~2013 Iwas ofexamined ~~Regulation~~by ~~S-X as~~ the ~~restricted~~Internal ~~net~~Revenue ~~assets~~Service ~~of the Company’s PRC subsidiaries~~ and ~~VIE~~resulted ~~exceed~~in ~~25% of~~no ~~the consolidated net assets of the Company~~adjustment.

1311. ~~SUBSEQUENT~~CONCENTRATION ~~EVENTS~~OF CREDIT RISK

~~On July 16, 2015, the Company, transferred~~Substantially ~~100%~~all of the ~~issued~~Company’s ~~and~~bank ~~outstanding~~accounts ~~shares~~are oflocated ~~Value~~in ~~Development~~The ~~Holdings,~~People’s ~~Ltd.~~Republic ~~(“Value~~of ~~Development”) to~~ China ~~Dairy Corporation~~and ~~Ltd.~~are ~~(“China~~not ~~Dairy,”~~covered aby ~~Hong~~protection similar ~~Kong~~to ~~company),~~that ~~which~~provided ~~is 60% owned indirectly~~ by the ~~Company~~FDIC ~~through~~on ~~the~~funds ~~Company’s wholly~~held ~~owned~~in ~~subsidiary,~~United ~~Hope~~States ~~Diary Holdings Ltd~~banks. ~~(“Hope Diary,” a British Virgin Islands company).~~

~~F-35~~In November 2015, the Company entered milk sale agreement with another three customers and terminated the contracts with the original four customers. In February 2016, the Company entered into a new milk sale agreement with one customer after terminated the contract with the original customer.

~~China~~Three customers ~~Modern~~accounted ~~Agricultural~~for ~~Information~~approximately 72% and four customers accounted approximately 100% of milk sales for the years ended June 30, ~~Inc~~2016 and 2015, respectively. Three customers and four customers also accounted for approximately 71% and 48% of accounts receivable at June 30, 2016 and 2015, respectively.

Seventy-six farmers and thirty-nine ~~subsidiaries~~farmers accounted for the notes receivable at June 30, 2016 and 2015, respectively.

~~NOTES TO~~12. ~~THE~~Parent ~~CONSOLIDATED~~company ~~FINANCIAL~~only ~~STATEMENTS~~condensed financial information

~~FOR~~The ~~THE~~following ~~FISCAL~~is ~~YEARS~~the condensed financial information of China Modern Agricultural Information, Inc. only, the US parent, balance sheets as of June 30, 2016 and 2015, statements of income for the years ended ~~JUNE~~June 30, 2016 and 2015, ~~AND~~and ~~2014~~statements of cash flows for ~~(IN~~the ~~U.S.~~years $)ended June 30, 2016 and 2015:

~~13. SUBSEQUENT EVENTS (CONTINUED)~~F-39

~~These transactions involves nominal consideration received or paid as Value Development and~~ China ~~Dairy are under common control by the Company and this transaction~~ isModern aAgricultural ~~restriction~~Information, ~~to the Company’s interests in Value Development~~Inc.

~~As a result of this transaction,~~and the Company indirectly owns 60% of China Dairy, as the Company owns 100% shares of Hope Diary, which in turn owns 60% of the shares of China Dairy, which in turn owns 100% of the shares of Value Development.subsidiaries

~~The remaining 40% of the shares~~NOTES ofTO ~~China~~THE ~~Dairy~~CONSOLIDATED isFINANCIAL ~~owned~~STATEMENTS ~~by the following entities: 3% to Beijing Ruihua Future, 4% to Donghe Group, 3% to Integral Capital, 20% to Dingxi Shanghai Fund and 10% to Zhiyuan International.~~

	Shares
Hope Diary Holdings Ltd.		6,000
Beijing Ruihua Future Investment Management Co. Ltd.		300
Donghe Group Limited		400
Integral Capital Group Pty Ltd.		300
Dingxi (Shanghai ) Equity Investment Fund		2,000
Zhiyuan International Holding Co. Limited		1,000
Total		10,000

FOR THE YEARS ended JUNE 30, 2016 AND 2015 (IN U.S. $)

~~Value Development is the sole shareholder of Value Development Group Limited, which is the sole shareholder of Harbin Jiasheng Consulting Managerial Co~~12. ~~Ltd.,~~Parent ~~which is the Company’s subsidiary in China, with respect to which the operating~~ company, ~~Heilongjiang~~only ~~Zhongxian~~condensed ~~Information~~financial ~~Co.~~information Ltd., is a variable interest entity. The effect of this transaction was to reduce the interest of the Company in its operating company by 40%. This will result in the Company recognizing a transaction loss of approximately $50,300,000 during the quarter ended September 30, 2015.(CONTINUED)

~~The purpose of the transfer of Value~~Condensed ~~Development~~Balance to China Dairy is to facilitate a public offering of the capital stock of China Dairy in Australia. The successful completion of an offering in Australia will further dilute the Company’s ownership of China Dairy.Sheets

On September 16, 2015 the Company’s 60%-owned subsidiary, Harbin Jiasheng Consulting Management Co., Ltd. ("Jiasheng Consulting"), exercised its option to purchase all of the registered equity of the Company’s operating subsidiary, Heilongjiang Zhongxian Information Co., Ltd. ("Zhongxian Information") from its stockholders Zhenxin Liu and Youliang Wang, who are also the members of the Company’s Board of Directors, for RMB10,000 (approximately $1,634).

ASSETS	June 30, 2016		June 30, 2015

Cash	$	3,067,131	$	-
Loan Receivable		-		3,208,151
Investment in subsidiaries		88,190,256		126,051,350

TOTAL ASSETS	$	91,257,387	$	129,259,501

LIABILITIES AND stockholders’ EQUITY

Stockholder loans	$	1,672,707	$	937,524

Stockholders’ equity
Common stock, $0.001 par value; 75,000,000 shares authorized; 53,100,000 shares issued and outstanding		53,100		53,100
Additional paid-in capital		49,709,237		5,851,170
Retained earnings		39,822,343		122,417,707

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	91,257,387	$	129,259,501

Prior to the acquisition, Jiasheng Consulting controlled Zhongxian Information through a series of contractual agreements, which made Zhongxian Information a variable interest entity, the effect of which was to cause the balance sheet and operating results of Zhongxian Information to be consolidated with those of Jiasheng Consulting in the Company’s financial statements. As a result of the acquisition by Jiasheng Consulting of the registered ownership of Zhongxian Information, the balance sheet and operating results of Zhongxian Information will hereafter continue to be consolidated with those of Jiasheng Consulting as its 100% owned subsidiary.F-40

~~F-36~~China Modern Agricultural Information, Inc.

~~Item 9A. Controls~~ and ~~Procedures~~ subsidiaries

~~Evaluation~~NOTES TO ofTHE ~~Disclosure~~CONSOLIDATED ~~Controls~~FINANCIAL ~~and~~STATEMENTS ~~Procedures~~

~~We maintain disclosure controls and procedures~~FOR asTHE ~~defined~~YEARS inended ~~Rules~~JUNE ~~13a-15(e) and 15d-15(e) of the Exchange Act that are designed to ensure that information required to be disclosed in our reports filed or submitted to the SEC under the Exchange Act is recorded~~30, ~~processed,~~2016 ~~summarized~~AND and reported within the time periods specified by the SEC’s rules and forms, and that information is accumulated and communicated to management, including the principal executive and financial officers as appropriate, to allow timely decisions regarding required disclosures. Our President and Chief Executive Officer and our Chief Financial Officer evaluated the effectiveness of disclosure controls and procedures as of June 30, 2015, ~~pursuant to Rule 13a-15~~(b)IN under the Exchange Act. Based on that evaluation, the President and Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were not effective to ensure that information required to be included in our periodic SEC filings is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms due to a material weakness related to a lack of accounting personnel with sufficient experience in maintaining books and records and preparing financial statements in accordance with U.S. ~~GAAP.~~$)

~~Management's~~12. ~~Annual~~Parent ~~Report~~company ononly ~~Internal Control~~condensed ~~Over~~financial ~~Financial~~information ~~Reporting.~~(CONTINUED)

~~Our management is responsible for establishing~~Condensed ~~and~~Statements ~~maintaining adequate internal control over financial reporting. Our internal control system was designed to, in general, provide reasonable assurance to our management and Board~~ of ~~Directors~~Income regarding the preparation and fair presentation of published financial statements, but because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Our management assessed the effectiveness of our internal control over financial reporting as of June 30, 2015. The framework used by management in making that assessment was the criteria set forth in the document entitled “Internal Control - Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that assessment, our management has determined that as of June 30, 2015, our internal control over financial reporting was not effective due to a material weakness related to a lack of accounting personnel with sufficient experience in maintaining books and records and preparing financial statements in accordance with U.S. GAAP.

	For the years ended June 30,
	2016			2015

Revenues
Share of earnings (loss) from investment in subsidiaries and VIE	$	18,935,506		$	32,408,267

Operating expenses
General and administrative		37,781,000			183,000

Net (loss) income	$	(18,845,494	)	$	32,225,267

~~A material weakness is a deficiency, or combination~~Condensed ofStatements ~~deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement~~ of ~~the~~Cash ~~Company’s annual or interim financial statements will not be prevented or detected on a timely basis.~~Flows

Changes in Internal Control over Financial Reporting

	For the years ended June 30,
	2016			2015

Cash flows from operating activities
Net (loss) income	$	(18,845,494	)	$	32,225,267
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Share of earnings from investment in subsidiaries and VIE		(18,935,506	)		32,225,267
Stock compensation for shareholder and consultants		37,781,000
Decrease in loan receivable		3,208,151

Net cash provided by (used in) operating Activities		3,208,151			-

Effect of exchange rate changes on cash		(141,020	)

Net change in cash		3,067,131			-
Cash, beginning of period		-			-

Cash, end of period	$	3,067,131		$	-

~~No change in our internal control over financial~~Basis ~~reporting occurred during the fourth fiscal quarter~~ of ~~the fiscal year ended June 30, 2015 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.~~Presentation

~~Item~~The Company 9Brecords its investment in its subsidiaries under the equity method of accounting. ~~Other~~Such ~~Information~~investments are presented as “Investment in subsidiaries” on the condensed balance sheets and the subsidiaries and VIE profits upon September 16, 2015 (the date of VIE structure dissolved - Note 1)) are presented as “Share of earnings from the investment in subsidiaries” in the condensed statements of income.

~~None.~~F-41

25China Modern Agricultural Information, Inc.

~~PART III~~and subsidiaries

~~Item~~NOTES TO ~~10.~~THE ~~Directors,~~CONSOLIDATED ~~Executive~~FINANCIAL ~~Officers~~STATEMENTS ~~and Corporate Governance.~~

~~Set~~FOR THE ~~forth~~YEARS ~~below~~ended isJUNE ~~information~~30, ~~regarding~~2016 ~~our~~AND ~~directors~~2015 ~~and~~(IN ~~executive officers~~U.S. $)

Name	Age	Position
Liu Enjia	68	Chairman of the Board of Directors
Wang Youliang	47	Chief Executive Officer, Director
Shan Yanqin	68	Director
Liu Yanyan	41	Chief Financial Officer
Qin Libei	63	Chief Operating Officer
Liu Zhengxin	42	Chief Human Resource Officer

12.

Parent company only condensed financial information (CONTINUED)

~~A brief description~~ Basis of ~~the~~Presentation ~~background and business experience of our sole executive officer and director for the past five years is as follows:~~(continued)

MrCertain information and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted. ~~Liu~~The ~~Enjia~~parent-only financial information has been derived from the Company’s consolidated financial statements and should be read in conjunction with the Company’s consolidated financial statements.

~~Mr. Liu Enjia is the Chairman of the Company. In 1985,~~There ~~Mr.~~were ~~Liu~~no ~~Enjia~~cash ~~served~~transactions asin the ~~Chairman~~US ofparent ~~the~~company ~~Board~~during ~~for Hong Kong Yunli Development (Heilongjiang) Co. Thereafter, in 1991, Mr. Liu Enjia served as~~ the ~~Chairman~~years ~~and~~ended ~~President~~June ~~of Hong Kong Yunli Group. Mr. Liu Enjia has also served as faculty member and lecturer at numerous Chinese universities. In 1994~~30, he2016 ~~was a guest lecturer~~ and ~~Visiting Professor at the Social Development Institute at Peking University~~2015. Also, in 1994, he served as a Visiting Professor at Shenzhen University. In 1995, he was a guest researcher with the State Economic System Reform Committee. Also in 1995, Mr. Liu Enjia served as consultant for the Heilongjiang Provincial Government System, as well as the Honorary President of Chamber of Commerce of the Heilongjiang Province.

~~In 1996, at the National Agricultural Conference, Mr.~~Restricted ~~Liu~~Net Enjia proposed the business model for agricultural enterprise, which was published in the People’s Forum. Mr. Liu Enjia also established the “Zhongxian Agriculture” theory and the harmonious ecological agricultural practice model which has been implemented in the Heilongjiang Province, winning high praise from State leaders and the State Council.Assets

~~Mr.~~Under PRC ~~Liu~~laws ~~Enjia~~and isregulations, athe ~~dedicated~~Company’s ~~researcher~~PRC ofsubsidiaries ~~China’s economic~~are ~~behavior~~restricted ~~and~~in ~~reform.~~their Toability ~~that~~to ~~end,~~transfer hecertain ~~currently~~of ~~serves~~their asnet assets to the ~~Director~~Company in the form of ~~China’s~~dividend ~~Economic~~payments, ~~Behavior~~loans ~~Research~~or ~~Center~~advances. ~~Mr.~~ ~~Liu~~The ~~Enjia~~restricted isnet ~~credited~~assets ~~with~~of ~~advancing~~ the ~~“Zhongxian”~~Company’s ~~model~~PRC subsidiaries and ~~business~~amounted ~~commercialization~~to ~~theory~~$ 155,919,882 ~~which~~and ~~brought about~~$ ~~entrusted~~123,732,097 ~~operations~~as inof ~~state-owned~~June ~~enterprises~~30, ~~attracting~~2016 ~~the~~and ~~eye~~2015, ~~of the international community~~respectively.

WeThe Company’s ~~believe~~operations ~~that~~and ~~Mr.~~revenues ~~Liu~~are ~~Enjia~~conducted and generated in the PRC, and all of the Company’s revenues being earned and currency received are denominated in RMB. RMB is ~~qualified~~subject to ~~serve on~~the ~~our~~foreign ~~Board~~exchange ofcontrol ~~Directors~~regulation ~~because~~in heChina, ~~brings~~and, as a ~~broad~~result, ~~base~~the Company may be unable to distribute any dividends outside of ~~knowledge~~China ~~and~~due ~~experience~~to inPRC foreign exchange control regulations that restrict the ~~agriculture~~Company’s ~~industry~~ability to convert RMB into US Dollars.

~~Mr. Wang Youliang~~F-42

~~Mr. Youliang is the Chief Executive Officer and a Director of the Company. From 1991 to 1997, Mr. Youliang was a staff member of the Tonghua Branch of~~ China ~~Construction Bank. Thereafter,~~ ~~from~~Modern ~~1997~~Agricultural to 2006, he was the founder and President of TonghuaHongyuan Trading Co., Ltd. From 2006 to 2008, MrYouliang served as the CMO of Yunnan NanyaoJiaoxiong Pharmaceutical Co., Ltd. From 2008 to 2010 he served as the Vice President of Guofa Venture Investment Co., Ltd. Currently, Mr. Youliang is the General Manager, Chief Executive Officer and Director of Heilongjiang Zhongxian Information ~~Co.~~, ~~Ltd~~Inc. ~~Mr. Youliang graduated from Jilin University with a degree in Finance.~~

~~We believe that Mr. Wang Youliang is qualified to serve on our Board of Directors because he brings a broad base of knowledge~~ and ~~experience in business administration and management.~~ subsidiaries

26NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MsFOR THE YEARS ended JUNE 30, 2016 AND 2015 (IN U.S. ~~Shan~~$) ~~Yanqin~~

Ms12. ~~Shan~~Parent ~~Yangin serves as a Director. While working with Harbin Thermodynamic Company from 1990-2000, she served as the office director and manager of the~~ company. ~~Thereafter,~~only ~~from 2000-2005,~~condensed ~~Ms.~~financial ~~Yangin~~information was the founder and Vice President of Daqing Sunlight Terrestrial Heat Tubing Sales Co., Ltd. From 2005 to the present, Ms. Yangin serves as a Director for Heilongjiang Zhongxian Information Co., Ltd. Ms. Shan Yangin graduated from the Harbin University of Commerce with a Business Administration degree.(CONTINUED)

~~We believe that Ms. Shan Yanqin is qualified to serve~~Restricted onNet ~~our~~Assets ~~Board of Directors because she brings a broad base of knowledge and experience in business administration and management.~~(continued)

MsSchedule I of Article 5-04 of Regulation S-X requires the condensed financial information of the parent company to be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. ~~Liu~~For ~~Yanyan~~purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the Company’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by its subsidiaries in the form of loans, advances or cash dividends without the consent of a third party. The condensed parent company only financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company’s PRC subsidiaries exceed 25% of the consolidated net assets of the Company.

Ms13. ~~Liu~~Subsequent Yanyan serves as the Chief Financial Officer of the company. Ms. Yanyan has over a decade of experience in accounting and financial management. From 1995-2000 she served as a staff member of the Harbin Decorative Advertisement Design Corporation. Thereafter, she served as a staff member of Baixin Shoes Co., Ltd from 2000-2001. More recently, from 2002 to May 2010, Ms. Yanyan was a member of Harbin CaiyunTradings Company. Ms. Liu Yanyan graduated from the Heilongjiang College of Commerce with an accounting degree.event

MrIn July 2016, the Company paid the dividends at AUD $0.0057 ~~Qin~~per ~~Libei~~share, a total of AUD $4,188,967 to all its shareholders.

~~Mr.~~In ~~Qin~~July ~~Libei serves as the Chief Operating Officer of the company. Mr. Libei has significant experience in the agricultural and livestock field. From 1981 to 1986~~2016, heXinhua ~~was~~Cattle ~~the Chief~~contributed ~~Secretary of Heilongjiang Bureau of Animal Husbandry. From 1986 to 1990 he was~~ the ~~Deputy~~net ~~Chief~~profit of ~~Heilongjiang Livestock Breeding Guidance Station. Then~~$6,225,856 ~~from~~and ~~1991 to 1994~~$99,923, ~~he served as the Deputy Chief of Heilongjiang Grassland Fodder Center experiment station. Additionally~~respectively, ~~from 1995~~ to ~~2000~~Zhongxian heInformation ~~served~~and as the ~~Chairman~~1% ofowned ~~Heilongjiang~~minority ~~Grassland Fodder Development Co~~shareholder., ~~Ltd.~~The ~~and President~~total ofrepresents ~~Heilongjiang Caiyuan Information Co. Ltd. More recently, from 2001 to 2010 Mr. Libei was a researcher with~~ the ~~Heilognjiang Grassland~~net ~~Fodder~~profit ~~Center~~of ~~experimentation~~Xinhua ~~station.~~Cattle ~~Currently,~~for ~~Mr. Libei also serves as~~ the ~~Chief~~years ~~Operating~~ended ~~Officer~~June ~~for Heilongjiang Zhongxian Information Co.~~30, ~~Ltd..~~2008 ~~Mr. Libei graduated from Heilongjiang University with a degree in Economics~~ and ~~Management~~2007.

~~Mr. Liu Zhengxin~~F-43

~~Mr. Lin Zhengxin serves as the Chief Human Resource~~Item ~~Officer of the company~~9A. ~~From~~Controls 1992 to 1993, Mr. Zhengxin was a sales representative with Yunli Development (Heilongjiang) Co., Ltd. Then, from 1993 to 2005, he serves as sales director for Yunli Development (Heilongjiang) Co., Ltd. More recently, from 2005 to 2010, Mr. Zhengxin was the Assistant President of Heilongjiang Zhongxian Information Co. Ltd. From 2008 to the present, Mr. Zhengxin also serves as the CHO for Heilongjiang Zhongxian Information Co. Ltd.. Mr. Zhengxin holds an accounting degree from Heilongjiang Institute of Economic Management, and ~~a minor in Human Resource Management.~~Procedures

~~Term~~(a) Evaluation of ~~Office~~Disclosure Controls and Procedures

~~Our~~Pursuant to ~~directors~~Rule ~~are~~13a-15(b) ~~appointed~~under ~~for~~the aSecurities ~~one-year~~Exchange ~~term~~Act toof 1934 ("Exchange Act"), the Company carried out an evaluation, ~~hold~~with ~~office~~the ~~until~~participation of the ~~next~~Company's ~~annual~~management, ~~general~~including ~~meeting~~the Company's Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of ~~our~~the ~~stockholders~~effectiveness orof ~~until~~the ~~removed~~Company's ~~from~~disclosure ~~office~~controls and procedures (as defined in Rule ~~accordance~~13a-15(e) ~~with~~under ~~our~~the ~~bylaws~~Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company's ~~Our~~CEO ~~officers~~and ~~are~~CFO ~~appointed~~concluded bythat ~~our~~the ~~Board~~Company's ofdisclosure ~~Directors~~controls and ~~hold~~procedures ~~office~~were ~~until~~not ~~removed~~effective to ensure that information required to be disclosed by the ~~Board~~Company ofin ~~Directors~~the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

~~There are no agreements or understandings among Mr.~~(b) ~~Liu~~Management's ~~Enjia,~~Annual ~~Mr.~~Report ~~Wang~~on ~~Youliang,~~Internal ~~Ms.~~Control ~~Shan~~over ~~Yanqin,~~Financial Ms. Liu Yanyan, Mr. Qin Libei, and Mr. Liu Zhengxin and any other person pursuant to which Mr. Liu Enjia, Mr. Wang Youliang, Ms. Shan Yanqin, Ms. Liu Yanyan, Mr. Qin Libei, and Mr. Liu Zhengxin were selected as a director or executive officer.Reporting

~~Family~~Management, including ~~Relationships~~our CEO and CFO, is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a – 15(f). Management conducted an assessment as of December 31, 2011 of the effectiveness of our internal control over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission 2013 framework ("COSO"). Based on that evaluation, our CEO and CFO concluded that, as of June 30, 2016, the Company had a material weakness with respect to its internal controls over financial reporting because it did not have a sufficient number of personnel to provide for adequate segregation of duties and independent review and approval of specific transactions. In addition, the Company lacked a sufficient number of personnel with an appropriate level of knowledge and experience of generally accepted accounting principles in the United States of America (U.S. GAAP).

~~Mr.~~This Annual ~~Liu~~Report ~~Enjia~~does ~~and~~not ~~Mr.~~include ~~Liu~~an ~~Zhengxin~~attestation ~~are~~report ~~father~~of ~~and~~our ~~son.~~registered public accounting firm regarding internal control over ~~There~~financial ~~are~~reporting. noManagement's ~~other~~report ~~family~~was ~~relationships~~not ~~between~~subject to attestation by our ~~director~~registered public accounting firm pursuant to temporary rules of the Securities and ~~executive~~Exchange ~~officers~~Commission that permit us to provide only management's report in this Annual Report.

27(c) Changes in Internal Controls

~~Involvement~~There have been no changes in ~~Legal~~the ~~Proceedings~~Company's internal control over financial reporting during the latest fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

~~To the best of our knowledge, our director or executive~~Item ~~officer~~9B. ~~has~~Other ~~not, during the past ten years:~~Information.

●There is ~~been~~no ~~convicted~~other ininformation arequired ~~criminal proceeding or been subject~~ to abe ~~pending~~disclosed ~~criminal~~under ~~proceeding~~this ~~(excluding~~item ~~traffic~~which ~~violations~~was ~~and~~not ~~other~~previously ~~minor offenses);~~disclosed.

● had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;27

● been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;PART III

●Item 10. ~~been~~Directors, ~~found~~Executive byOfficers ~~a court of competent jurisdiction in a civil action or by the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law,~~ and ~~the~~Corporate ~~judgment has not been reversed, suspended, or vacated;~~Governance.

●Set forth ~~been~~below ~~the~~is ~~subject~~information ~~of,~~regarding orour adirectors party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and~~-desist~~ ~~order,~~executive ~~or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or~~officers.

● been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

Name	Age	Position
Liu Enjia	69	Chairman of the Board of Directors
Wang Youliang	48	Chief Executive Officer, Director
Shan Yanqin	69	Director
Liu Yanyan	42	Chief Financial Officer
Qin Libei	64	Chief Operating Officer
Liu Zhengxin	43	Chief Human Resource Officer

~~Except~~A brief asdescription ~~set~~of ~~forth~~the inbackground ~~our discussion below in “Certain Relationships~~ and ~~Related~~business ~~Transactions,”~~experience ~~our director or executive officer has not been involved in any transactions with us or any~~ of our ~~directors,~~sole executive ~~officers,~~officer ~~affiliates~~and ordirector ~~associates~~for ~~which~~the ~~are~~past ~~required~~five ~~to be disclosed pursuant to the rules~~years ~~and~~is ~~regulations~~as ~~of the SEC.~~follows:

~~Potential~~Mr. Liu ~~Conflicts of Interest~~Enjia

WeMr. Liu ~~are~~Enjia ~~not~~is ~~aware~~the Chairman of ~~any~~the ~~current~~Company. orIn ~~potential~~1985, ~~conflicts~~Mr. Liu Enjia served as the Chairman of the Board for Hong Kong Yunli Development (Heilongjiang) Co. Thereafter, in 1991, Mr. Liu Enjia served as the Chairman and President of ~~interest~~Hong Kong Yunli Group. Mr. Liu Enjia has also served as faculty member and lecturer at numerous Chinese universities. In 1994, he was a guest lecturer and Visiting Professor at the Social Development Institute at Peking University. Also, in 1994, he served as a Visiting Professor at Shenzhen University. In 1995, he was a guest researcher with ~~our~~the ~~directors~~State orEconomic ~~executive~~System ~~officers~~Reform Committee. Also in 1995, Mr. Liu Enjia served as consultant for the Heilongjiang Provincial Government System, as well as the Honorary President of Chamber of Commerce of the Heilongjiang Province.

~~Board~~In 1996, ~~Committees~~at the National Agricultural Conference, Mr. Liu Enjia proposed the business model for agricultural enterprise, which was published in the People’s Forum. Mr. Liu Enjia also established the “Zhongxian Agriculture” theory and the harmonious ecological agricultural practice model which has been implemented in the Heilongjiang Province, winning high praise from State leaders and the State Council.

~~We have not formed an Audit Committee, Compensation~~Mr. ~~Committee~~Liu orEnjia ~~Nominating~~is ~~and~~a ~~Corporate~~dedicated ~~Governance~~researcher ~~Committee as~~ of ~~the~~China’s ~~filing~~economic ofbehavior ~~this~~and ~~Annual Report~~reform. ~~Our~~To ~~Board~~that ofend, ~~Directors~~he ~~performs the principal functions of an Audit Committee. We~~ currently doserves ~~not~~as ~~have~~the anDirector of ~~audit~~China’s ~~committee~~Economic ~~financial~~Behavior ~~expert~~Research onCenter. ~~our Board of Directors~~Mr. We ~~believe~~Liu ~~that~~Enjia ~~an audit committee financial expert~~ is ~~not~~credited ~~required~~with ~~because~~advancing the ~~cost~~“Zhongxian” ~~of hiring an audit committee financial expert~~model toand ~~act~~business ascommercialization ~~one~~theory, ofwhich ~~our~~brought ~~directors~~about ~~and~~entrusted tooperations bein astate-owned ~~member~~enterprises, ofattracting ~~an Audit Committee outweighs~~ the ~~benefits~~ eye of ~~having~~the aninternational ~~audit committee financial expert at this time~~community.

28We believe that Mr. Liu Enjia is qualified to serve on our Board of Directors because he brings a broad base of knowledge and experience in the agriculture industry.

~~Section 16(a) Beneficial Ownership Reporting Compliance~~28

Section 16(a) of the Exchange Act requires our directors, officers and persons who beneficially own more than 10% of a registered class of our equity securities, to file reports of ownership and changes in ownership with the SEC and are required to furnish us with copies of these reportsMr. ~~Based~~ ~~solely~~Wang on our review of the reports filed with the SEC, we believe that all persons subject to Section 16(a) of the Exchange Act timely filed all required reports in fiscal year ended June 30, 2015, except that reports were not filed by the following persons:Youliang

Name	Number of Late Reports		Transactions Not Timely Reported		Known Failures to File a Required Form
Liu Enjia		1		0		1
Wang Youliang		1		0		1
Shan Yanqin		1		0		1
Liu Yanyan		1		0		1
Qin Libei		1		0		1
Liu Zhengxin		1		0		1

Mr. Youliang is the Chief Executive Officer and a Director of the Company. From 1991 to 1997, Mr. Youliang was a staff member of the Tonghua Branch of China Construction Bank. Thereafter, from 1997 to 2006, he was the founder and President of TonghuaHongyuan Trading Co., Ltd. From 2006 to 2008, Mr. Youliang served as the CMO of Yunnan NanyaoJiaoxiong Pharmaceutical Co., Ltd. From 2008 to 2010 he served as the Vice President of Guofa Venture Investment Co., Ltd. Currently, Mr. Youliang is the General Manager, Chief Executive Officer and Director of Heilongjiang Zhongxian Information Co., Ltd. Mr. Youliang graduated from Jilin University with a degree in Finance.

~~Code~~We believe that Mr. Wang Youliang is qualified to serve on our Board of ~~Ethics~~Directors because he brings a broad base of knowledge and experience in business administration and management.

~~We have not adopted a Code of Ethics that is applicable to our Chief Executive Officer and chief financial and principal accounting officer~~Ms. ~~We are in the process of formulating a code of ethics and intend~~ toShan ~~adopt one in the future.~~Yanqin

~~Item~~Ms. Shan 11Yangin serves as a Director. ~~Executive~~While ~~Compensation~~working with Harbin Thermodynamic Company from 1990-2000, she served as the office director and manager of the company. Thereafter, from 2000-2005, Ms. Yangin was the founder and Vice President of Daqing Sunlight Terrestrial Heat Tubing Sales Co., Ltd. From 2005 to the present, Ms. Yangin serves as a Director for Heilongjiang Zhongxian Information Co., Ltd. Ms. Shan Yangin graduated from the Harbin University of Commerce with a Business Administration degree.

~~The~~We believe ~~following~~that ~~table~~Ms. ~~sets~~Shan ~~forth~~Yanqin ~~the~~is ~~compensation paid~~qualified orto ~~accrued~~serve byon ~~us to~~ our ~~President,~~Board ~~Chief~~of ~~Executive~~Directors ~~Officer,~~because ~~Chief~~she ~~Financial~~brings ~~Officer~~a ~~and~~broad ~~each~~base of ~~our~~knowledge ~~other officers for the~~and ~~fiscal~~experience ~~year~~in ~~ended~~business ~~June~~administration ~~30,~~and ~~2015~~management.

Name and Principal Position	Fiscal Year		Salary (USD $)		Bonus (USD $)		Option Awards (USD $)		All Other Compensation (USD $)		Total (USD $)
Wang Youliang		2014		11,714		-		-		-		11,714
Chief Executive Officer		2015		11,714		-		-		-		11,714
Liu Yanyan		2014		8,786		-		-		-		8,786
Chief Financial Officer		2015		8,542		-		-		-		8,542
Qin Libei		2014		7,810		-		-		-		7,810
Chief Operating Officer		2015		7,810		-		-		-		7,810
Liu Zhengxin		2014		5,857		-		-		-		5,857
Chief Human Resource Officer		2015		5,857		-		-		-		5,857

Ms. Liu Yanyan

~~Narrative~~Ms. Liu ~~Disclosure~~Yanyan serves as the Chief Financial Officer of the company. Ms. Yanyan has over a decade of experience in accounting and financial management. From 1995-2000 she served as a staff member of the Harbin Decorative Advertisement Design Corporation. Thereafter, she served as a staff member of Baixin Shoes Co., Ltd from 2000-2001. More recently, from 2002 to ~~Summary~~May ~~Compensation~~2010, ~~Table~~Ms. Yanyan was a member of Harbin CaiyunTradings Company. Ms. Liu Yanyan graduated from the Heilongjiang College of Commerce with an accounting degree.

Mr. Qin ~~Wang Youliang~~Libei

~~For~~Mr. Qin Libei serves as the ~~fiscal~~Chief ~~years~~Operating ~~ended~~Officer ~~June~~of ~~30,~~the ~~2015~~ company. Mr. Libei has significant experience in the agricultural and ~~2014~~livestock field. From 1981 to 1986, Mrhe was the Chief Secretary of Heilongjiang Bureau of Animal Husbandry. ~~Wang~~From ~~Youliang~~1986 ~~received~~to ~~annual~~1990 ~~compensation~~he was the Deputy Chief of ~~RMB~~Heilongjiang 72Livestock Breeding Guidance Station. Then, ~~000~~from 1991 to 1994, orhe ~~USD~~served ~~$11~~as the Deputy Chief of Heilongjiang Grassland Fodder Center experiment station. Additionally,~~594~~ from 1995 to 2000 he served as the Chairman of Heilongjiang Grassland Fodder Development Co., Ltd. and ~~$11~~President of Heilongjiang Caiyuan Information Co. Ltd. More recently,~~714~~ ~~respectively~~from ~~due~~2001 to 2010 Mr. Libei was a researcher with the ~~fluctuating~~Heilongjiang Grassland Fodder Center experimentation station. Currently, Mr. Libei also serves as the ~~currency~~Chief ~~exchange~~Operating ~~rate~~Officer ~~between~~for ~~USD~~Heilongjiang ~~and~~Zhongxian ~~RMB~~Information Co., Ltd. Mr. Libei graduated from Heilongjiang University with a degree in ~~respective~~Economics ~~year~~and Management.

~~We entered into an Employment Agreement with Wang Youliang (the “Youliang Agreement”). Pursuant to the Youliang Agreement,~~ Mr. ~~Wang will serve as our Chief Executive Officer. The initial term of~~ ~~Youliang~~Liu Agreement ended in 2014, but the agreement was renewed until July 31, 2015. The Youliang Agreement provides that Mr. Wang’s initial base salary during the term shall be RMB 72,000, or approximately USD $11,714 per annum. Mr. Wang’s salary shall be paid on monthly basis, payable at the 30th day of each following month. If the Company unilaterally terminates the employment within the term of the agreement, the Company shall, on the termination date, make a lump-sum salary payment of the immediately preceding month to Mr. Wang plus compensation equal to three (3) months of Mr. Wang’s salary.Zhengxin

~~The~~Mr. Lin ~~agreement~~Zhengxin ~~provides~~serves ~~that~~as itthe ~~will~~Chief ~~automatically~~Human ~~terminate~~Resource ~~upon~~Officer ~~either~~ of the ~~expiration~~company. ofFrom ~~the~~1992 ~~term~~to of1993, ~~the~~Mr. ~~Youliang~~Zhengxin ~~Agreement~~was a sales representative with Yunli Development (Heilongjiang) Co., orLtd. ~~the~~Then, ~~occurrence~~from of1993 ~~events~~to ~~authorizing~~2005, ~~such~~he ~~termination~~serves oras ~~the~~sales ~~dissolution of~~director ~~the~~for ~~Company~~Yunli Development (Heilongjiang) Co., ~~The~~Ltd. ~~Youliang~~More ~~Agreement~~recently, ~~may~~from ~~also~~2005 beto ~~terminated~~2010, ~~upon~~Mr. Zhengxin was the ~~occurrence~~Assistant President of ~~either~~Heilongjiang aZhongxian ~~serious~~Information ~~violation~~Co. Ltd. ofFrom ~~company~~2008 ~~policy by~~to the present, Mr. ~~Wang~~Zhengxin oralso byserves ~~any~~as ~~major~~the ~~damages~~CHO tofor ~~the~~Heilongjiang ~~Company~~Zhongxian ~~resulting~~Information ~~from~~Co. Ltd. Mr. ~~Wang’s~~Zhengxin holds ~~failure~~an toaccounting ~~duly~~degree ~~perform~~from ~~his~~Heilongjiang ~~duties~~Institute of Economic Management, and a minor in Human Resource Management.

~~Ms.~~Term of ~~Liu Yanyan~~Office

~~For~~Our directors ~~the~~are ~~fiscal~~appointed ~~year~~for ~~ended~~a ~~June~~one-year ~~30,~~term ~~2015 and~~to ~~2014,~~hold ~~Ms.~~office ~~Liu~~until ~~Yanyan~~the ~~received~~next annual ~~compensation~~general meeting of ~~RMB~~our ~~54,000,~~stockholders or ~~USD~~until removed $from ~~8,695~~office ~~and~~in ~~$8,786~~accordance ~~respectively~~with ~~due~~our tobylaws. ~~the~~Our ~~fluctuating currency~~officers ~~exchange~~are ~~rate~~appointed ~~between~~by ~~USD~~our Board of Directors and ~~RMB~~hold inoffice ~~respective~~until removed ~~year~~by the Board of Directors.

WeThere are ~~entered~~no ~~into~~agreements anor ~~Employment~~understandings ~~Agreement~~among ~~with~~Mr. Liu ~~Yanyan~~Enjia, ~~(the “Yanyan Agreement”)~~Mr. ~~Pursuant~~Wang toYouliang, ~~the~~Ms. ~~Yanyan~~Shan ~~Agreement~~Yanqin, Ms. Liu ~~serves~~Yanyan, ~~as our Chief Financial Officer~~Mr. ~~The~~Qin ~~initial~~Libei, ~~term of Yanyan~~and ~~Agreement~~Mr. ~~ended~~Liu inZhengxin ~~2014,~~and ~~but~~any ~~the~~other ~~agreement~~person ~~was~~pursuant ~~renewed~~to ~~until~~which ~~July 31, 2015~~Mr. ~~The Yanyan Agreement provides that Ms.~~ Liu~~’s initial~~ ~~base salary during the term shall be RMB 54~~Enjia,~~000,~~ orMr. ~~approximately~~Wang $8Youliang,~~786~~ ~~per annum.~~ Ms. ~~Liu’s~~Shan ~~salary shall be paid on monthly basis~~Yanqin, ~~payable at the 30th day of each following month. If the Company unilaterally terminates~~ Ms. Liu ~~within~~Yanyan, ~~the term~~Mr. ofQin ~~the agreement~~Libei, ~~the~~and ~~Company shall, on the termination date, make a lump-sum salary payment of the immediately preceding month to Ms~~Mr. Liu ~~plus~~Zhengxin ~~compensation~~were ~~equal~~selected toas ~~three~~a ~~(3)~~director ~~months~~or ofexecutive Msofficer. ~~Liu’s salary.~~

~~The agreement provides that it will automatically terminate upon either~~Family the expiration of the term of the Yanyan Agreement, or the occurrence of events authorizing such termination or the dissolution of the Company. The Yanyan Agreement may also be terminated upon the occurrence of either a serious violation of the company policy by Ms. Liu or by any major damages to the Company resulting from Ms. Liu’s failure to duly perform her duties.Relationships

Mr. Liu ~~Qin~~Enjia ~~Libei~~and Mr. Liu Zhengxin are father and son. There are no other family relationships between our director and executive officers.

~~For the fiscal year ended June 30, 2015~~Involvement ~~and 2014, Mr. Qin Libei received annual compensation of RMB 48,000, or USD $7,729 and $7,810 respectively due to the fluctuating currency exchange rate between USD and RMB~~ in ~~respective~~Legal ~~year.~~Proceedings

~~We entered into an Employment Agreement with Qin Libei (the “Libei~~To ~~Agreement”). Pursuant to~~ the ~~Libei~~best ~~Agreement,~~of ~~Mr. Qin serves as~~ our ~~Chief Operating Officer. The initial term of Libei Agreement ended in 2014~~knowledge, ~~but~~our ~~the~~director ~~agreement~~or ~~was~~executive ~~renewed~~officer ~~until~~has ~~July 31~~not, ~~2015. The Libei Agreement provides that Mr. Qin’s initial base salary~~ during the ~~term~~past ~~shall~~ten be 48,000 RMB, or approximately USD,$7,810 per annum. Mr. Qin’s salary shall be paid on monthly basis, payable at the 30th day of each following month. If the Company unilaterally terminates Mr. Qin within the term of the agreement, the Company shall, on the termination date, make a lump-sum salary payment of the immediately preceding month to Mr. Qin plus compensation equal to three (3) months of Mr. Qin’s salary.years:

~~The~~● ~~agreement~~been ~~provides~~convicted ~~that~~in it will automatically terminate upon either the expiration of the term of the Libei Agreement, or the occurrence of events authorizing such termination or the dissolution of the Company. The Libei Agreement may also be terminated upon the occurrence of either a ~~serious~~criminal ~~violation~~proceeding ~~of the company policy by Mr. Qin~~ or bybeen ~~any~~subject ~~major damages~~ to ~~the~~a ~~Company~~pending ~~resulting~~criminal ~~from~~proceeding ~~Mr.~~(excluding ~~Qin’s~~traffic ~~failure~~violations toand ~~duly~~other ~~perform~~minor ~~his duties.~~offenses);

~~Mr.~~● ~~Liu~~had ~~Zhengxin~~any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;

~~For~~● ~~the~~been ~~fiscal~~subject ~~year~~to ~~ended~~any ~~June~~order, 30judgment, ~~2015 and~~or ~~2014~~decree, ~~Mr.~~not ~~Liu~~subsequently ~~Zhengxin~~reversed, ~~received~~suspended ~~annual~~or ~~compensation~~vacated, of ~~RMB~~any 36court of competent jurisdiction or federal or state authority,~~000,~~ permanently or ~~USD~~temporarily $5enjoining,~~797~~ ~~and~~barring, $5suspending or otherwise limiting,~~857~~ ~~respectively~~his ~~due~~involvement toin ~~the~~any ~~fluctuating currency~~type ~~exchange~~of ~~rate~~business, ~~between~~securities, ~~USD~~futures, commodities, investment, banking, savings and ~~RMB~~loan, or insurance activities, or to be associated with persons engaged in ~~respective~~any ~~fiscal~~such ~~year.~~activity;

We● ~~entered~~been ~~into~~found anby ~~Employment~~a ~~Agreement~~court ~~with Liu Zhengxin (the “Zhengxin Agreement”). Pursuant to the Zhengxin Agreement, Mr. Liu serves as our Chief HR Officer. The initial term~~ of ~~Zhengxin~~competent ~~Agreement ended~~jurisdiction in ~~2014,~~a ~~but~~civil ~~the~~action ~~agreement~~or ~~was~~by ~~renewed~~the ~~until~~SEC ~~July~~or ~~31,~~the ~~2015.~~Commodity ~~The~~Futures ~~Zhengxin~~Trading ~~Agreement~~Commission ~~provides~~to ~~that~~have ~~Mr.~~violated ~~Liu’s~~a ~~initial base~~federal ~~salary~~or ~~during~~state ~~the~~securities ~~term shall be 36,000 RMB,~~ or ~~USD~~commodities $5law,~~857~~ ~~per~~and ~~annum. Mr. Liu’s salary shall be paid on monthly basis, payable at~~ the ~~30th~~judgment ~~day~~has ofnot ~~each~~been ~~following month. If the Company unilaterally terminates Ms. Zhengxin within the term of the agreement~~reversed, ~~the~~ ~~Company shall~~suspended, onor ~~the termination date, make a lump-sum salary payment of the immediately preceding month to Mr. Liu plus compensation equal to three (3) months of Mr. Liu’s salary.~~vacated;

~~The~~● ~~agreement~~been ~~provides~~the ~~that~~subject itof, ~~will~~or ~~automatically~~a ~~terminate~~party ~~upon~~to, ~~either the~~any ~~expiration~~federal ofor ~~the~~state ~~term~~judicial ofor ~~the~~administrative ~~Zhengxin~~order, ~~Agreement~~judgment, decree, or ~~the~~finding, ~~occurrence~~not subsequently reversed, suspended or vacated (not including any settlement of ~~events~~a ~~authorizing~~civil ~~such~~proceeding ~~termination~~among orprivate ~~the~~litigants), ~~dissolution~~ relating to an alleged violation of ~~the~~any ~~Company.~~federal ~~The~~or ~~Zhengxin~~state ~~Agreement~~securities ~~may~~or ~~also~~commodities belaw ~~terminated~~or ~~upon~~regulation, ~~the~~any ~~occurrence~~law ofor ~~either~~regulation respecting financial institutions or insurance companies including, but not limited to, a ~~serious~~temporary ~~violation~~or permanent injunction, order of ~~the~~disgorgement ~~company policy~~or byrestitution, ~~Mr.~~civil ~~Liu~~money penalty or bytemporary or permanent cease-and-desist order, or removal or prohibition order, or any ~~major~~law ~~damages~~or toregulation ~~the~~prohibiting ~~Company~~mail ~~resulting~~or ~~from~~wire ~~Mr.~~fraud ~~Liu’s~~or ~~failure~~fraud toin ~~duly~~connection ~~perform~~with ~~his~~any ~~duties.~~business entity; or

30● been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

~~Outstanding~~Except as ~~Equity~~set ~~Awards~~forth atin ~~Fiscal~~our ~~Year-End~~discussion ~~Table~~below in “Certain Relationships and Related Transactions,” our director or executive officer has not been involved in any transactions with us or any of our directors, executive officers, affiliates or associates which are required to be disclosed pursuant to the rules and regulations of the SEC.

~~None.~~Potential Conflicts of Interest

~~Director~~We are ~~Compensation~~not aware of any current or potential conflicts of interest with our directors or executive officers.

~~The members of our board of directors are not compensated for serving on~~Board ~~the board.~~Committees

~~Item~~We have 12not formed an Audit Committee, Compensation Committee or Nominating and Corporate Governance Committee as of the filing of this Annual Report. ~~Security~~Our ~~Ownership~~Board of ~~Certain~~Directors ~~Beneficial~~performs ~~Owners~~the ~~and~~principal ~~Management~~functions of an Audit Committee. We currently do not have an audit committee financial expert on our Board of Directors. We believe that an audit committee financial expert is not required because the cost of hiring an audit committee financial expert to act as one of our directors and ~~Related~~to ~~Stockholder~~be ~~Matters~~a member of an Audit Committee outweighs the benefits of having an audit committee financial expert at this time.

The following table shows the number of our securities beneficially owned by our named executive officers, our director, our executive officers and directors as a group, and each person known to us to own more than 5% of our outstanding shares of common stock as of October 12, 2015. Except as otherwise indicated, all shares are owned directly and the shareholders possess sole voting and investment power with respect to the shares listed below. As of October 12, 2015, 53,100,000 shares of our common stock were issued and outstanding. Unless otherwise stated, the business address of the person listed below is c/o No.A09, Wuzhou Sun Town Limin Avenue, Limin Development District Harbin, Heilongjiang, China.30

Name and Address	Amount and Nature of Beneficial Ownership (1)		Percentage of Class (2)
Youliang Wang, Chief Executive Officer and Director		4,049,775		7.63	%
Yanyan Liu, Chief Financial Officer		0		0	%
Libei Qin, Chief Operating Officer		0		0	%
Zhengxin Liu, Chief Human Resource Officer		7,936,784		14.95	%
Enjia Liu, Chairman of the Board of Directors		0		0	%
Yanqin Shan, Director		0		0	%
All officers and directors as group (6)		11,986,559		22.88	%

Section 16(a) Beneficial Ownership Reporting Compliance

(1)

A person is considered to beneficially own any shares: (i) over which such person, directly or indirectly, exercises sole or shared voting or investment power, or (ii) of which such person has the right to acquire beneficial ownership at any time within 60 days through such as exercise of stock options or warrants. Unless otherwise indicated, voting and investment power relating to the shares shown in the table for our directors and executive officers is exercised solely by the beneficial owner or shared by the owner and the owner’s spouse or children.

(2)

For purposes of this table, a person or group of persons is deemed to have “beneficial ownership” of any shares of common stock that such person has the right to acquire within 60 days of October 12, 2015. For purposes of computing the percentage of outstanding shares of our common stock held by each person or group of persons named above, any shares that such person or persons has the right to acquire within 60 days of October 12, 2015 is deemed to be outstanding, but is not deemed to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein of any shares listed as beneficially owned does not constitute an admission of beneficial ownership.

Section 16(a) of the Exchange Act requires our directors, officers and persons who beneficially own more than 10% of a registered class of our equity securities, to file reports of ownership and changes in ownership with the SEC and are required to furnish us with copies of these reports. Based solely on our review of the reports filed with the SEC, we believe that all persons subject to Section 16(a) of the Exchange Act timely filed all required reports in fiscal year ended June 30, 2016, except that reports were not filed by the following persons:

Name

Number of
Late Reports

Transactions
Not Timely
Reported

Known
Failures
to File a
Required
Form

Liu Enjia

Filing Compare · China Modern Agricultural Information, Inc.