in the prc controlled by jinong through contractual agreements ; ( vi ) shenqiu county zhenbai agriculture co. , ltd. ( “ zhenbai agri ” ) , a vie controlled by jinong through contractual agreements ; ( vii ) weinan city linwei district wangtian agricultural materials co. , ltd. ( “ wangtian ” ) , a vie controlled by jinong through contractual agreements ; ( viii ) aksu xindeguo agricultural materials co. , ltd. ( “ xindeguo ” ) , a vie controlled by jinong through contractual agreements ; ( ix ) xinjiang xinyulei eco-agriculture science and technology co. , ltd ( “ xinyulei ” ) , a vie controlled by jinong through contractual agreements ; ( x ) sunwu county xiangrong agricultural materials co. , ltd. ( “ xiangrong ” ) , a vie controlled by jinong through contractual agreements ; ( xi ) anhui fengnong seed co. , ltd. ( “ fengnong ” ) , a vie controlled by jinong through contractual agreements ; ( xii ) beijing gufeng chemical products co. , ltd. , a wholly-owned subsidiary of jinong in the prc ( “ gufeng ” ) ; and ( xiii ) beijing tianjuyuan fertilizer co. , ltd. , gufeng 's wholly-owned subsidiary in the prc ( “ tianjuyuan ” ) . yuxing , lishijie , jinyangguang , zhenbai , wangtian , xindeguo , xinyulei , xiangrong and fengnong may also collectively be referred to as the “ the vie companies ” ; lishijie , jinyangguang , zhenbai , wangtian , xindeguo , xinyulei , xiangrong and fengnong may also collectively be referred to as “ the sales vies ” . unless the context otherwise requires , all references to ( i ) “ prc ” and “ china ” are to the people 's republic of china ; ( ii ) “ u.s . dollar , ” “ $ ” and “ us $ ” are to united states dollars ; and ( iii ) “ rmb ” , “ yuan ” and renminbi are to the currency of the prc or china . overview we are engaged in research , development , production and sale of various types of fertilizers and agricultural products in the prc through our wholly-owned chinese subsidiaries , jinong and gufeng ( including gufeng 's subsidiary tianjuyuan ) , and our vie companies . our primary business is the manufacturing and sales of fertilizer products . specifically , the manufactured fertilizers are humic-acid based compound fertilizer produced by jinong and compound fertilizer , blended fertilizer , organic compound fertilizer , slow-release fertilizer , highly-concentrated water-soluble fertilizer and mixed organic-inorganic compound fertilizer produced by gufeng . while the sales vies do n't manufacture fertilizer products , being the company 's newly founded sales segment , they are dedicated to procuring various agriculture materials from different suppliers for sale to customers across the nation . in addition , through yuxing , we develop and produce various agricultural products , such as top-grade fruits , vegetables , flowers and colored seedlings . for financial reporting purposes , our operations are organized into three business segments : fertilizer products ( jinong ) , fertilizer products ( gufeng ) and agricultural products production ( yuxing ) . the fertilizer business conducted by jinong and gufeng generated approximately 74 % and 96.9 % of our total revenues for the years ended june 30 , 2017 and 2016 , respectively . the sales vies generated 23 % and 0 % of our revenues for the years ended june 30 , 2017 and 2016 , respectively . yuxing serves as a research and development base for our fertilizer products . 38 as of june 30 , 2017 , we had developed , produced , and sold a total of 717 different fertilizer products in use , of which 134 were developed and produced by jinong , 332 by gufeng , and 251 by the eight sales vies ( namely lishijie , jinyangguang , zhenbai agri , wangtian , xindeguo , xinyulei , xiangrong and fengnong ) that we acquired on june 30 , 2016 and january 1 , 2017. through the acquisition of these eight sales vies , we expanded our product offering and begin to offer our customers a broader range of products . below is a table that shows the metric tons of fertilizer sold by jinong and gufeng and the revenue per ton for the periods indicated : replace_table_token_7_th for the fiscal year ended june 30 , 2017 , we sold approximately 361,388 metric tons of fertilizer products , as compared to 413,633 metric tons for the fiscal year ended june 30 , 2016. for the fiscal year ended june 30 , 2017 , jinong sold approximately 51,506 metric tons of fertilizer products , as compared to 55,259 metric tons for the fiscal year ended june 30 , 2016. for the fiscal year ended june 30 , 2017 , gufeng sold approximately 309,882 metric tons of fertilizer products , as compared to 358,374 metric tons for the fiscal year ended june 30 , 2016. our sales of fertilizer products to five provinces accounted for approximately 41 % of our manufactured fertilizer revenue for year ended june 30 , 2017. specifically , the provinces and their respective percentage contributed to our fertilizer revenues were : hebei ( 16 % ) , heilongjiang ( 8 % ) , liaoning ( 6 % ) , inner mongolia ( 5 % ) and shaanxi ( 5 % ) , as of june 30 , 2017 , we had a total of 1,917 distributors covering 22 provinces , 4 autonomous regions and 4 central government-controlled municipalities in china . jinong had 1,112 distributors in china . jinong 's sales are not dependent on any single distributor or any group of distributors . story_separator_special_tag costs and packaging cost . selling expenses – amortization of deferred assets our selling expenses - amortization of our deferred assets were $ 14,564,305 , or 5.1 % , of net sales for the fiscal year ended june 30 , 2017 , as compared to $ 35,068,273 or 13.0 % of net sales for the fiscal year ended june 30 , 2016 , a decrease of $ 20,503,968 , or 58.5 % . this decrease was since some of the deferred assets were fully amortized and therefore no amortization was recorded on the fully amortized assets during the last year . general and administrative expenses general and administrative expenses consisted primarily of related salaries , rental expenses , business development , depreciation and travel expenses incurred by our general and administrative departments and legal and professional expenses , including expenses incurred and accrued for certain litigation . general and administrative expenses were $ 19,321,999 , or 6.8 % of net sales for the fiscal year ended june 30 , 2017 , as compared to $ 11,841,228 , or 4.4 % , of net sales for the fiscal year ended june 30 , 2016 , an increase of $ 7,480,771 , or 63.2 % . total other expenses total other expenses consisted of income from subsidies received from the prc government , interest income , interest expenses and bank charges . total other expense for the fiscal year ended june 30 , 2017 was $ 313,737 , as compared to $ 515,759 for the fiscal year ended june 30 , 2016 , a decrease in expense of $ 202,022 , or 39.2 % . the decrease in total other expense partly resulted from a decrease in interest expense by $ 446,309 or 44.8 % , to $ 549,650 during the year ended june 30 , 2017 as compared to $ 995,959 during the year ended june 30 , 2016 , due to a lesser amount of short term loans outstanding in 2017 as compared to 2016. income taxes jinong is subject to a preferred tax rate of 15 % because of its business being classified as a high-tech project under the prc enterprise income tax law ( “ eit ” ) that became effective on january 1 , 2008. jinong incurred income tax expenses of $ 3,521,978 for the fiscal year ended june 30 , 2017 , as compared to $ 3,592,823 for the fiscal year ended june 30 , 2016 , a decrease of $ 70,845 or 2 % . gufeng is subject to a tax rate of 25 % , and incurred income tax expenses of $ 2,148,326 for the fiscal year ended june 30 , 2017 , as compared to $ 3,779,145 for the fiscal year ended june 30 , 2016 , a decrease of $ 1,630,819 , or 43.2 % . yuxing has no income tax for the years ended june 30 , 2017 and 2016 because of being exempted from paying income tax due to its products falling into the tax exemption list set out in the eit . net income net income for the fiscal year ended june 30 , 2017 was $ 25,152,154 , an increase of $ 447,961 , or 1.8 % , compared to $ 24,704,193 for the fiscal year ended june 30 , 2016. the increase was attributable to the decrease in selling expenses and other expense . net income as a percentage of total net sales was approximately 8.8 % and 9.2 % for the fiscal year ended june 30 , 2017 and 2016 , respectively . discussion of segment profitability measures as of june 30 , 2017 , we were engaged in the following businesses : the production and sale of fertilizers through jinong and gufeng , the production and sale of high-quality agricultural products by yuxing , and the sales of agriculture materials by the sales vies . for financial reporting purpose , our operations were organized into four main business segments based on locations and products : jinong ( fertilizer production ) , gufeng ( fertilizer production ) and yuxing ( agricultural products production ) and the sales vies . each of the segments has its own annual budget about development , production and sales . 44 each of the four operating segments referenced above has separate and distinct general ledgers . the chief operating decision maker ( “ codm ” ) makes decisions with respect to resources allocation and performance assessment upon receiving financial information , including revenue , gross margin , operating income and net income produced from the various general ledger systems ; however , net income by segment is the principal benchmark to measure profit or loss adopted by the codm . for jinong , the net income decreased 4.8 % , by $ 952,111 to $ 18,699,889 for the year ended june 30 , 2017 , from $ 19,652,000 for the fiscal year ended june 30 , 2016. the difference was due to the decrease in net sales . for gufeng , the net income decreased by $ 4,112,337 or 39 % to $ 6,444,979 for the year ended june 30 , 2017 from $ 10,557,316 for year ended june 30 , 2016. the difference was due to the decrease in net sales . for yuxing , the net income decreased 261.5 % by $ 3,847,373 to $ -2,375,961 for the year ended june 30 , 2017 from $ 1,471,412 for year ended june 30 , 2016. the loss was mainly due to a significant increase for general and administrative expense . for the sales vies , the net income was $ 2,552,459 for year ended june 30 , 2017. story_separator_special_tag representing an increase of $ 14,397,744 , or 274.4 % . the increase was primarily due to the increase of accounts payable for vies . it has account payable of $ 18,355,921 as of june 30 , 2017 as compared to $ 3,840,052 as of last year , representing an increase

liquidity and capital resources our principal sources of liquidity include cash from operations , borrowings from local commercial banks and net proceeds of offerings of our securities consummated in july 2009 and november/december 2009 ( collectively the “ public offerings ” ) . as of june 30 , 2017 , cash and cash equivalents were $ 123,050,548 , an increase of $ 20,154,062 , or 19.6 % , from $ 102,896,486 as of june 30 , 2016. we intend to use some of the remaining net proceeds from the public offerings , as well as other working capital if required , to acquire new businesses such as the eight sales vies described above , upgrade production lines and complete yuxing 's new greenhouse facilities for agriculture products located on 88 acres of land in hu county , 18 kilometers southeast of xi'an city . yuxing purchased a set of agricultural products test equipment for the year of 2016. we believe that we have sufficient cash on hand and positive projected cash flow from operations to support our business growth for the next twelve months to the extent we do not have further significant acquisitions or expansions . however , if events or circumstances occur and we do not meet our operating plan as expected , we may be required to seek additional capital and or to reduce certain discretionary spending , which could have a material adverse effect on our ability to achieve our business objectives . notwithstanding the foregoing , we may seek additional financing as necessary for expansion purposes and when we believe market conditions are most advantageous , which may include additional debt and or equity financings . there can be no assurance that any additional financing will be available on acceptable terms , if at all . any equity financing may result in dilution to existing stockholders and any debt financing may include restrictive covenants .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources our principal sources of liquidity include cash from operations , borrowings from local commercial banks and net proceeds of offerings of our securities consummated in july 2009 and november/december 2009 ( collectively the “ public offerings ” ) . as of june 30 , 2017 , cash and cash equivalents were $ 123,050,548 , an increase of $ 20,154,062 , or 19.6 % , from $ 102,896,486 as of june 30 , 2016. we intend to use some of the remaining net proceeds from the public offerings , as well as other working capital if required , to acquire new businesses such as the eight sales vies described above , upgrade production lines and complete yuxing 's new greenhouse facilities for agriculture products located on 88 acres of land in hu county , 18 kilometers southeast of xi'an city . yuxing purchased a set of agricultural products test equipment for the year of 2016. we believe that we have sufficient cash on hand and positive projected cash flow from operations to support our business growth for the next twelve months to the extent we do not have further significant acquisitions or expansions . however , if events or circumstances occur and we do not meet our operating plan as expected , we may be required to seek additional capital and or to reduce certain discretionary spending , which could have a material adverse effect on our ability to achieve our business objectives . notwithstanding the foregoing , we may seek additional financing as necessary for expansion purposes and when we believe market conditions are most advantageous , which may include additional debt and or equity financings . there can be no assurance that any additional financing will be available on acceptable terms , if at all . any equity financing may result in dilution to existing stockholders and any debt financing may include restrictive covenants .
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 Suspicious Activity Report : in the prc controlled by jinong through contractual agreements ; ( vi ) shenqiu county zhenbai agriculture co. , ltd. ( “ zhenbai agri ” ) , a vie controlled by jinong through contractual agreements ; ( vii ) weinan city linwei district wangtian agricultural materials co. , ltd. ( “ wangtian ” ) , a vie controlled by jinong through contractual agreements ; ( viii ) aksu xindeguo agricultural materials co. , ltd. ( “ xindeguo ” ) , a vie controlled by jinong through contractual agreements ; ( ix ) xinjiang xinyulei eco-agriculture science and technology co. , ltd ( “ xinyulei ” ) , a vie controlled by jinong through contractual agreements ; ( x ) sunwu county xiangrong agricultural materials co. , ltd. ( “ xiangrong ” ) , a vie controlled by jinong through contractual agreements ; ( xi ) anhui fengnong seed co. , ltd. ( “ fengnong ” ) , a vie controlled by jinong through contractual agreements ; ( xii ) beijing gufeng chemical products co. , ltd. , a wholly-owned subsidiary of jinong in the prc ( “ gufeng ” ) ; and ( xiii ) beijing tianjuyuan fertilizer co. , ltd. , gufeng 's wholly-owned subsidiary in the prc ( “ tianjuyuan ” ) . yuxing , lishijie , jinyangguang , zhenbai , wangtian , xindeguo , xinyulei , xiangrong and fengnong may also collectively be referred to as the “ the vie companies ” ; lishijie , jinyangguang , zhenbai , wangtian , xindeguo , xinyulei , xiangrong and fengnong may also collectively be referred to as “ the sales vies ” . unless the context otherwise requires , all references to ( i ) “ prc ” and “ china ” are to the people 's republic of china ; ( ii ) “ u.s . dollar , ” “ $ ” and “ us $ ” are to united states dollars ; and ( iii ) “ rmb ” , “ yuan ” and renminbi are to the currency of the prc or china . overview we are engaged in research , development , production and sale of various types of fertilizers and agricultural products in the prc through our wholly-owned chinese subsidiaries , jinong and gufeng ( including gufeng 's subsidiary tianjuyuan ) , and our vie companies . our primary business is the manufacturing and sales of fertilizer products . specifically , the manufactured fertilizers are humic-acid based compound fertilizer produced by jinong and compound fertilizer , blended fertilizer , organic compound fertilizer , slow-release fertilizer , highly-concentrated water-soluble fertilizer and mixed organic-inorganic compound fertilizer produced by gufeng . while the sales vies do n't manufacture fertilizer products , being the company 's newly founded sales segment , they are dedicated to procuring various agriculture materials from different suppliers for sale to customers across the nation . in addition , through yuxing , we develop and produce various agricultural products , such as top-grade fruits , vegetables , flowers and colored seedlings . for financial reporting purposes , our operations are organized into three business segments : fertilizer products ( jinong ) , fertilizer products ( gufeng ) and agricultural products production ( yuxing ) . the fertilizer business conducted by jinong and gufeng generated approximately 74 % and 96.9 % of our total revenues for the years ended june 30 , 2017 and 2016 , respectively . the sales vies generated 23 % and 0 % of our revenues for the years ended june 30 , 2017 and 2016 , respectively . yuxing serves as a research and development base for our fertilizer products . 38 as of june 30 , 2017 , we had developed , produced , and sold a total of 717 different fertilizer products in use , of which 134 were developed and produced by jinong , 332 by gufeng , and 251 by the eight sales vies ( namely lishijie , jinyangguang , zhenbai agri , wangtian , xindeguo , xinyulei , xiangrong and fengnong ) that we acquired on june 30 , 2016 and january 1 , 2017. through the acquisition of these eight sales vies , we expanded our product offering and begin to offer our customers a broader range of products . below is a table that shows the metric tons of fertilizer sold by jinong and gufeng and the revenue per ton for the periods indicated : replace_table_token_7_th for the fiscal year ended june 30 , 2017 , we sold approximately 361,388 metric tons of fertilizer products , as compared to 413,633 metric tons for the fiscal year ended june 30 , 2016. for the fiscal year ended june 30 , 2017 , jinong sold approximately 51,506 metric tons of fertilizer products , as compared to 55,259 metric tons for the fiscal year ended june 30 , 2016. for the fiscal year ended june 30 , 2017 , gufeng sold approximately 309,882 metric tons of fertilizer products , as compared to 358,374 metric tons for the fiscal year ended june 30 , 2016. our sales of fertilizer products to five provinces accounted for approximately 41 % of our manufactured fertilizer revenue for year ended june 30 , 2017. specifically , the provinces and their respective percentage contributed to our fertilizer revenues were : hebei ( 16 % ) , heilongjiang ( 8 % ) , liaoning ( 6 % ) , inner mongolia ( 5 % ) and shaanxi ( 5 % ) , as of june 30 , 2017 , we had a total of 1,917 distributors covering 22 provinces , 4 autonomous regions and 4 central government-controlled municipalities in china . jinong had 1,112 distributors in china . jinong 's sales are not dependent on any single distributor or any group of distributors . story_separator_special_tag costs and packaging cost . selling expenses – amortization of deferred assets our selling expenses - amortization of our deferred assets were $ 14,564,305 , or 5.1 % , of net sales for the fiscal year ended june 30 , 2017 , as compared to $ 35,068,273 or 13.0 % of net sales for the fiscal year ended june 30 , 2016 , a decrease of $ 20,503,968 , or 58.5 % . this decrease was since some of the deferred assets were fully amortized and therefore no amortization was recorded on the fully amortized assets during the last year . general and administrative expenses general and administrative expenses consisted primarily of related salaries , rental expenses , business development , depreciation and travel expenses incurred by our general and administrative departments and legal and professional expenses , including expenses incurred and accrued for certain litigation . general and administrative expenses were $ 19,321,999 , or 6.8 % of net sales for the fiscal year ended june 30 , 2017 , as compared to $ 11,841,228 , or 4.4 % , of net sales for the fiscal year ended june 30 , 2016 , an increase of $ 7,480,771 , or 63.2 % . total other expenses total other expenses consisted of income from subsidies received from the prc government , interest income , interest expenses and bank charges . total other expense for the fiscal year ended june 30 , 2017 was $ 313,737 , as compared to $ 515,759 for the fiscal year ended june 30 , 2016 , a decrease in expense of $ 202,022 , or 39.2 % . the decrease in total other expense partly resulted from a decrease in interest expense by $ 446,309 or 44.8 % , to $ 549,650 during the year ended june 30 , 2017 as compared to $ 995,959 during the year ended june 30 , 2016 , due to a lesser amount of short term loans outstanding in 2017 as compared to 2016. income taxes jinong is subject to a preferred tax rate of 15 % because of its business being classified as a high-tech project under the prc enterprise income tax law ( “ eit ” ) that became effective on january 1 , 2008. jinong incurred income tax expenses of $ 3,521,978 for the fiscal year ended june 30 , 2017 , as compared to $ 3,592,823 for the fiscal year ended june 30 , 2016 , a decrease of $ 70,845 or 2 % . gufeng is subject to a tax rate of 25 % , and incurred income tax expenses of $ 2,148,326 for the fiscal year ended june 30 , 2017 , as compared to $ 3,779,145 for the fiscal year ended june 30 , 2016 , a decrease of $ 1,630,819 , or 43.2 % . yuxing has no income tax for the years ended june 30 , 2017 and 2016 because of being exempted from paying income tax due to its products falling into the tax exemption list set out in the eit . net income net income for the fiscal year ended june 30 , 2017 was $ 25,152,154 , an increase of $ 447,961 , or 1.8 % , compared to $ 24,704,193 for the fiscal year ended june 30 , 2016. the increase was attributable to the decrease in selling expenses and other expense . net income as a percentage of total net sales was approximately 8.8 % and 9.2 % for the fiscal year ended june 30 , 2017 and 2016 , respectively . discussion of segment profitability measures as of june 30 , 2017 , we were engaged in the following businesses : the production and sale of fertilizers through jinong and gufeng , the production and sale of high-quality agricultural products by yuxing , and the sales of agriculture materials by the sales vies . for financial reporting purpose , our operations were organized into four main business segments based on locations and products : jinong ( fertilizer production ) , gufeng ( fertilizer production ) and yuxing ( agricultural products production ) and the sales vies . each of the segments has its own annual budget about development , production and sales . 44 each of the four operating segments referenced above has separate and distinct general ledgers . the chief operating decision maker ( “ codm ” ) makes decisions with respect to resources allocation and performance assessment upon receiving financial information , including revenue , gross margin , operating income and net income produced from the various general ledger systems ; however , net income by segment is the principal benchmark to measure profit or loss adopted by the codm . for jinong , the net income decreased 4.8 % , by $ 952,111 to $ 18,699,889 for the year ended june 30 , 2017 , from $ 19,652,000 for the fiscal year ended june 30 , 2016. the difference was due to the decrease in net sales . for gufeng , the net income decreased by $ 4,112,337 or 39 % to $ 6,444,979 for the year ended june 30 , 2017 from $ 10,557,316 for year ended june 30 , 2016. the difference was due to the decrease in net sales . for yuxing , the net income decreased 261.5 % by $ 3,847,373 to $ -2,375,961 for the year ended june 30 , 2017 from $ 1,471,412 for year ended june 30 , 2016. the loss was mainly due to a significant increase for general and administrative expense . for the sales vies , the net income was $ 2,552,459 for year ended june 30 , 2017. story_separator_special_tag representing an increase of $ 14,397,744 , or 274.4 % . the increase was primarily due to the increase of accounts payable for vies . it has account payable of $ 18,355,921 as of june 30 , 2017 as compared to $ 3,840,052 as of last year , representing an increase

