| BANK LOANS |
NOTE 17. BANK LOANS Short-term bank loans consisted of the following: | | | | | | | | | | | | June 30, | | June 30, | | June 30, | | | 2025 | | 2026 | | 2026 | | | RMB | | RMB | | US Dollars | Industry and Commercial Bank of China (“ICBC”) (1) | | ¥ | 10,000,000 | | ¥ | — | | $ | — | China Construction Bank (2) | | | 1,106,009 | | | — | | | — | Industry and Commercial Bank of China (“ICBC”) (3) | | | 476,327 | | | — | | | — | Industry and Commercial Bank of China (“ICBC”) (4) | | | — | | | 10,000,000 | | | 1,473,818 | China Construction Bank (5) | | | — | | | 1,106,105 | | | 163,019 | Industry and Commercial Bank of China (“ICBC”) (6) | | | — | | | 200,153 | | | 29,499 | Total short-term bank loans | | ¥ | 11,582,336 | | ¥ | 11,306,258 | | $ | 1,666,336 |
| (1) | On June 6, 2025, BHD drew down ¥10,000,000 ($1,473,818) under its revolving loan facility with ICBC as working capital for a term of one year, maturing on June 5, 2026. This loan is pledged by the self-owned housing property of one of the founders of BHD with carrying value of approximately ¥17.0 million ($2.4 million) as collateral for this loan. The loan was fully repaid as of June 30, 2026. |
| (2) | On June 3, 2025, FGS entered into a revolving loan facility with China Construction Bank to borrow up to ¥1,105,000 ($162,857) as working capital for twelve months, with a maturity date of June 3, 2026. The loan has a fixed interest rate of 3.65% per annum. Some non-controlling shareholder of FGS was co-borrower and bore joint and several liability for this loan. The loan was fully repaid as of June 30, 2026. |
| (3) | On June 18, 2025, FGS entered into a revolving loan facility with ICBC to borrow up to ¥476,000 ($70,154) as working capital for 360 days, with a maturity date of June 13, 2026. The loan has a fixed interest rate of 2.75% per annum. The loan was fully repaid as of June 30, 2026. |
| (4) | On June 2, 2026, BHD drew down ¥10,000,000 ($1,473,818) under its revolving loan facility with ICBC as working capital for a term of one year, maturing on June 2, 2027. The loan is pledged by the self-owned housing property of one of the founders of BHD with carrying value of approximately ¥17.0 million ($2.5 million) as collateral for this loan. |
| (5) | On May 15, 2026, FGS renewed its revolving loan facility with China Construction Bank, with a maximum borrowing capacity of ¥1,105,000 ($162,857) for working capital purposes. The facility matures on May 15, 2027 and bears a fixed annual interest rate of 3.6%. Certain non-controlling shareholders of FGS act as co-borrowers and are jointly and severally liable for the facility. |
| (6) | On June 11, 2026, FGS entered into a revolving loan facility with ICBC to borrow up to ¥200,000 ($29,476) as working capital for 360 days, with a maturity date of June 13, 2026. The loan has a fixed interest rate of 2.75% per annum. |
Interest expense for the short-term bank loan was ¥332,881, ¥343,159 and ¥312,841 ($46,107) for the years ended June 30, 2024, 2025 and 2026, respectively.
|