UNITED
STATES

SECURITIES
AND EXCHANGE COMMISSION

Washington,
D.C. 20549

FORM
10-K/A
(Amendment No. 1)

(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, 2017

or

☐ 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                         | ☐                           | Smaller
    reporting company | ☒
|(Do
    not check if a smaller reporting company) | Emerging
    growth company | ☐                            

If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

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 : $10,138,462.62.

Indicate the number of shares outstanding 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 September
29, 2016.



DOCUMENTS
INCORPORATED BY REFERENCE

None.


















EXPLANATORY NOTE





China Modern Agricultural
Information, Inc. (the “Company”) filed its Annual Report on Form 10-K for the fiscal year ended June 30, 2017 (the
“Original Form 10-K”), with the U.S. Securities and Exchange Commission (the “SEC”) on September 29, 2017.
The Company is filing this Amendment No. 1 to the Original Form 10-K (this “Form 10-K/A”) solely for the purpose
of inserting the audit report to the financial statements due to a clerical error.



Pursuant to
Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), this Form 10-K/A also contains
new certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. Accordingly, this Form 10-K/A includes the
currently dated certifications as exhibits.



No attempt
has been made in this Form 10-K/A to modify or update the other disclosures presented in the Original Form 10-K. This Form 10-K/A
does not reflect events occurring after the filing of the Original Form 10-K or modify or update the disclosures in the Original
Form 10-K, except as set forth in this Form 10-K/A, and should be read in conjunction with the Original Form 10-K and the Company’s
other filings with the SEC.













TABLE
OF CONTENTS



|             |                                                 | Page
|------------ | ----------------------------------------------- | ----
|             | PART II                                         |     
|Item
    8.  | Financial
    Statements And Supplementary Data | 1   
|             | PART IV                                         |     
|Item
    15. | Exhibits,
    Financial Statement Schedules     | 2   
|             |                                                 |     
|Signatures   | 3                                              















PART
II



Item
8. Financial Statements and Supplementary Data.



CHINA
MODERN AGRICULTURAL INFORMATION, INC. AND SUBSIDIARIES



CONSOLIDATED
FINANCIAL STATEMENTS

FOR
THE FISCAL YEARS ENDED MAY 31, 2017 AND 2016



|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





1











REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To
the Board of Directors and

Stockholders
of China Modern Agricultural Information, Inc. and Subsidiaries



We
have audited the accompanying consolidated balance sheets of China Modern Agricultural Information, Inc. and Subsidiaries (the
“Company”) as of June 30, 2017 and 2016 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, 2017. 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.



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 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 audits 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.



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, 2017 and 2016, and the consolidated
results of their operations and their cash flows for each of the years in two year period ended June 30, 2017, in conformity with
accounting principles generally accepted in the United States of America.



/s/
Wei, Wei & Co., LLP

Wei,
Wei, & Co., LLP

Flushing,
New York

September
29, 2017





F-1







China
Modern Agricultural Information, Inc.

and
subsidiaries



CONSOLIDATED
BALANCE SHEETS june
30, 2017 AND 2016 (IN U.S. $)




|ASSETS                             |  | June
30,
2017 |             |  | June 30,
2016 |  
|---------------------------------- |  | ------------- | ----------- |  | ------------- | -
|                                   |  |               |             |  |               |  
|Current assets                     |  |               |             |  |               |  
|Cash                               |  | $             | 53,241,856  |  |               | $
|Accounts receivable                |  |               | 26,170,771  |  |               |  
|Inventories                        |  |               | 1,042,171   |  |               |  
|Prepaid expenses                   |  |               | 1,374,693   |  |               |  
|Interest receivable                |  |               | 1,023,769   |  |               |  
|Notes receivable, current portion  |  |               | 4,661,775   |  |               |  
|                                   |  |               |             |  |               |  
|Total current assets               |  |               | 87,515,035  |  |               |  
|                                   |  |               |             |  |               |  
|Property, plant and equipment, net |  |               | 26,622,562  |  |               |  
|                                   |  |               |             |  |               |  
|Other assets                       |  |               |             |  |               |  
|Notes receivable                   |  |               | 19,193,347  |  |               |  
|Prepaid leases                     |  |               | 39,165,460  |  |               |  
|Biological assets, net             |  |               | 73,112,101  |  |               |  
|                                   |  |               |             |  |               |  
|Total other assets                 |  |               | 131,470,908 |  |               |  
|                                   |  |               |             |  |               |  
|TOTAL ASSETS                       |  | $             | 245,608,505 |  |               | $





See
accompanying notes to the consolidated financial statements.





F-2







China
Modern Agricultural Information, Inc.

and
subsidiaries



CONSOLIDATED
BALANCE SHEETS (CONTINUED) JUNE
30, 2017 AND 2016 (IN U.S. $)




|LIABILITIES AND stockholders’ EQUITY                                                                   |  | June
    30,
2017 |             |   | June 30,
                                                                                2016 |  
|------------------------------------------------------------------------------------------------------ |  | ----------------- | ----------- | - | --------------------------------------------------------------------------------------------- | -
|                                                                                                       |  |                   |             |   |                                                                                               |  
|Current liabilities                                                                                    |  |                   |             |   |                                                                                               |  
|Accrued expenses and other payables                                                                    |  | $                 | 888,271     |   |                                                                                               |  
|Dividend payable                                                                                       |  |                   | -           |   |                                                                                               |  
|Stockholder loans                                                                                      |  |                   | 1,918,341   |   |                                                                                               |  
|                                                                                                       |  |                   |             |   |                                                                                               |  
|Total current liabilities                                                                              |  |                   | 2,806,612   |   |                                                                                               |  
|                                                                                                       |  |                   |             |   |                                                                                               |  
|Deferred income taxes                                                                                  |  |                   | 40,066,873  |   |                                                                                               |  
|                                                                                                       |  |                   |             |   |                                                                                               |  
|Total liabilities                                                                                      |  |                   | 42,873,485  |   |                                                                                               |  
|                                                                                                       |  |                   |             |   |                                                                                               |  
|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      |   |                                                                                               |  
|Additional paid-in capital                                                                             |  |                   | 49,709,237  |   |                                                                                               |  
|Retained earnings                                                                                      |  |                   | 62,878,009  |   |                                                                                               |  
|Statutory reserve fund                                                                                 |  |                   | 420,406     |   |                                                                                               |  
|Other comprehensive (loss)                                                                             |  |                   | (9,402,310  | ) |                                                                                               |  
|                                                                                                       |  |                   |             |   |                                                                                               |  
|Sub-total                                                                                              |  |                   | 103,658,442 |   |                                                                                               |  
|                                                                                                       |  |                   |             |   |                                                                                               |  
|Noncontrolling interests                                                                               |  |                   | 99,076,578  |   |                                                                                               |  
|                                                                                                       |  |                   |             |   |                                                                                               |  
|Total stockholders’ equity                                                                             |  |                   | 202,735,020 |   |                                                                                               |  
|                                                                                                       |  |                   |             |   |                                                                                               |  
|TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY                                                             |  | $                 | 245,608,505 |   |                                                                                               | $





See
accompanying notes to the consolidated financial statements.





F-3







China
Modern Agricultural Information, Inc.

and
subsidiaries



CONSOLIDATED
STATEMENTS OF INCOME

AND
OTHER COMPREHENSIVE INCOME (LOSS)

FOR
THE YEARS ENDED jUNE 30, 2017 and 2016 (IN U.S. $)



|                                         |  | 2017 |             |   | 2016 |  
|---------------------------------------- |  | ---- | ----------- | - | ---- | -
|                                         |  |      |             |   |      |  
|Revenues                                 |  |      |             |   |      |  
|Milk sales                               |  | $    | 101,816,625 |   |      | $
|Sales commission                         |  |      | 17,998,410  |   |      |  
|                                         |  |      |             |   |      |  
|Total revenues                           |  |      | 119,815,035 |   |      |  
|Cost of goods sold                       |  |      | (74,262,475 | ) |      |  
|                                         |  |      |             |   |      |  
|Gross profit                             |  |      | 45,552,560  |   |      |  
|                                         |  |      |             |   |      |  
|Operating expenses                       |  |      |             |   |      |  
|R&D expenses                             |  |      | 869,648     |   |      |  
|Selling and marketing                    |  |      | 1,085,297   |   |      |  
|General and administrative               |  |      | 3,437,009   |   |      |  
|                                         |  |      |             |   |      |  
|Total operating expenses                 |  |      | 5,391,954   |   |      |  
|                                         |  |      |             |   |      |  
|Operating income (loss)                  |  |      | 40,160,606  |   |      |  
|                                         |  |      |             |   |      |  
|Other income and (expenses)              |  |      |             |   |      |  
|Interest income on notes receivable      |  |      | 974,051     |   |      |  
|Gain on disposal of properties           |  |      | 943,278     |   |      |  
|Non-Operating (expense)                  |  |      | -           |   |      |  
|Other non-operating income               |  |      | 135,365     |   |      |  
|                                         |  |      |             |   |      |  
|Total other income                       |  |      | 2,052,694   |   |      |  
|                                         |  |      |             |   |      |  
|Income before provision for income taxes |  |      | 42,213,300  |   |      |  
|Provision for income taxes               |  |      | -           |   |      |  



See
accompanying notes to the consolidated financial statements.





F-4







China
Modern Agricultural Information, Inc.

and
subsidiaries



CONSOLIDATED
STATEMENTS OF INCOME

AND
OTHER COMPREHENSIVE INCOME (LOSS) (CONTINUED)

FOR
THE YEARS ENDED jUNE 30, 2017 and 2016 (IN U.S. $)



|                                                       |  | 2017 |             |   | 2016 |  
|------------------------------------------------------ |  | ---- | ----------- | - | ---- | -
|                                                       |  |      |             |   |      |  
|Net income (loss) before noncontrolling interests      |  |      | 42,213,300  |   |      |  
|Noncontrolling interests                               |  |      | (20,054,726 | ) |      |  
|                                                       |  |      |             |   |      |  
|Net income (loss) attributable to common stockholders  |  |      | 22,158,574  |   |      |  
|                                                       |  |      |             |   |      |  
|Other comprehensive income                             |  |      |             |   |      |  
|Foreign currency translation adjustment                |  |      | (2,520,763  | ) |      |  
|                                                       |  |      |             |   |      |  
|Total comprehensive income (loss)                      |  | $    | 19,637,811  |   |      | $
|                                                       |  |      |             |   |      |  
|Earnings (losses) per common share, basic and diluted  |  | $    | 0.42        |   |      | $
|                                                       |  |      |             |   |      |  
|Weighted average shares outstanding, basic and diluted |  |      | 53,100,000  |   |      |  



See
accompanying notes to the consolidated financial statements.





F-5







China
Modern Agricultural Information, Inc.

and
subsidiaries



CONSOLIDATED
STATEMENTS OF changes in Stockholders’EQUITY

FOR
THE YEARSENDED JUNE 30, 2017 (IN U.S.
$)



|                                                                                                       |  | 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  |       | 
|                                                                                                       |  |              |        |  |                            |   |            |                   |  |   |                        |   |  |                          |          |   |                            |   |            |       | 
|Stock compensation                                                                                     |  |              | -      |  |                            |   | 37,762,400 |                   |  |   | -                      |   |  |                          | -        |   |                            |   | -          |       | 
|Net (loss) income                                                                                      |  |              | -      |  |                            |   | -          |                   |  |   | (18,845,494            | ) |  |                          | -        |   |                            |   | 16,641,448 |       | 
|Dividend declared                                                                                      |  |              | -      |  |                            |   | -          |                   |  |   | -                      |   |  |                          | -        |   |                            |   | (1,412,144 | )     | 
|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  |                   |  |   | (8,236,730             | ) |  |                          | (54,898  | ) |                            |   | 14,266,507 |       | 
|Other
    comprehensive (loss)                                                                         |  |              | -      |  |                            |   | -          |                   |  |   | -                      |   |  |                          | -        |   |                            |   | -          |       | 
|                                                                                                       |  |              |        |  |                            |   |            |                   |  |   |                        |   |  |                          |          |   |                            |   |            |       | 
|Balance
                                                                                 June 30, 2016 |  | $            | 53,100 |  |                            | $ | 49,709,237 |                   |  | $ | 42,410,980             |   |  | $                        | 420,406  |   |                            | $ | 79,114,623 |       | 



See
accompanying notes to the consolidated financial statements.





F-6







China
Modern Agricultural Information, Inc.

and
subsidiaries



CONSOLIDATED
STATEMENTS OF changes in Stockholders’EQUITY (CONTINUED)

FOR
THE YEARSENDED JUNE 30, 2017 (IN U.S.
$)



|                               |  | Common Stock |        |  | Additional Paid-in Capital |   |            | Retained Earnings |  |   | Statutory Reserve Fund |   |  | Noncontrolling Interests |         |  | Other Comprehensive Income |   |            | Total | 
|------------------------------ |  | ------------ | ------ |  | -------------------------- | - | ---------- | ----------------- |  | - | ---------------------- | - |  | ------------------------ | ------- |  | -------------------------- | - | ---------- | ----- | 
|                               |  |              |        |  |                            |   |            |                   |  |   |                        |   |  |                          |         |  |                            |   |            |       | 
|Balance, June 30, 2016         |  | $            | 53,100 |  |                            | $ | 49,709,237 |                   |  | $ | 42,410,980             |   |  | $                        | 420,406 |  |                            | $ | 79,114,623 |       | 
|                               |  |              |        |  |                            |   |            |                   |  |   |                        |   |  |                          |         |  |                            |   |            |       | 
|Net income                     |  |              | -      |  |                            |   | -          |                   |  |   | 22,158,574             |   |  |                          | -       |  |                            |   | 20,054,726 |       | 
|Dividend distribution          |  |              | -      |  |                            |   | -          |                   |  |   | (1,691,545             | ) |  |                          | -       |  |                            |   | (92,771    | )     | 
|Other
    comprehensive (loss) |  |              | -      |  |                            |   | -          |                   |  |   | -                      |   |  |                          | -       |  |                            |   | -          |       | 
|                               |  |              |        |  |                            |   |            |                   |  |   |                        |   |  |                          |         |  |                            |   |            |       | 
|Balance June 30, 2017          |  | $            | 53,100 |  |                            | $ | 49,709,237 |                   |  | $ | 62,878,009             |   |  | $                        | 420,406 |  |                            | $ | 99,076,578 |       | 



See
accompanying notes to the consolidated financial statements.





F-7







China
Modern Agricultural Information, Inc.

and
subsidiaries



CONSOLIDATED
STATEMENTS OF CASH FLOWS

FOR
THE YEARSENDED JUNE 30, 2017 AND 2016
(IN U.S. $)



|                                                                                     |  | 2017 |             |   | 2016 |  
|------------------------------------------------------------------------------------ |  | ---- | ----------- | - | ---- | -
|                                                                                     |  |      |             |   |      |  
|Cash flows from operating activities                                                 |  |      |             |   |      |  
|Net income (loss)                                                                    |  | $    | 42,213,300  |   |      | $
|Adjustment to reconcile net income to net cash provided by operating
    activities: |  |      |             |   |      |  
|Depreciation                                                                         |  |      | 7,191,346   |   |      |  
|Amortization for prepaid land lease                                                  |  |      | 1,684,865   |   |      |  
|Deferred income taxes                                                                |  |      | -           |   |      |  
|(Gain) loss from disposal from biological assets                                     |  |      | (943,278    | ) |      |  
|Stock compensation for shareholder and consultants                                   |  |      | -           |   |      |  
|Change in operating assets and liabilities                                           |  |      |             |   |      |  
|(Increase) in accounts receivable                                                    |  |      | (1,909,789  | ) |      |  
|Decrease (increase) in inventories                                                   |  |      | 80,672      |   |      |  
|(Increase) in prepayment                                                             |  |      | (181,106    | ) |      |  
|(Increase) in interest receivable                                                    |  |      | (556,104    | ) |      |  
|Increase in accrued expenses and other payables                                      |  |      | 370,220     |   |      |  
|                                                                                     |  |      |             |   |      |  
|Net cash provided by operating activities                                            |  |      | 47,950,126  |   |      |  
|                                                                                     |  |      |             |   |      |  
|Cash flows from investing activities                                                 |  |      |             |   |      |  
|Collection of notes receivable                                                       |  |      | 2,996,733   |   |      |  
|Proceeds from sales of biological assets                                             |  |      | 8,091,913   |   |      |  
|Proceeds from sales of PP&E                                                          |  |      | 7,491,900   |   |      |  
|Proceeds from sales of prepaid lease                                                 |  |      | 3,716,570   |   |      |  
|Purchase of property, plant and equipment                                            |  |      | (2,510,227  | ) |      |  
|(Increase) in Biological assets                                                      |  |      | (16,973,353 | ) |      |  
|Purchase of Biological property                                                      |  |      | (23,577,450 | ) |      |  
|                                                                                     |  |      |             |   |      |  
|Net cash (used in) investing activities                                              |  |      | (20,763,914 | ) |      |  
|                                                                                     |  |      |             |   |      |  
|Cash flows from financing activities                                                 |  |      |             |   |      |  
|Proceeds from sales of common stock by subsidiary                                    |  |      | -           |   |      |  
|Dividends paid for subsidiary                                                        |  |      | (3,222,667  | ) |      |  
|Proceeds from stockholder loans                                                      |  |      | 111,957     |   |      |  
|Repayment of stockholder loans                                                       |  |      | (20,935     | ) |      |  
|                                                                                     |  |      |             |   |      |  
|Net cash (used in) provided by financing activities                                  |  |      | (3,131,645  | ) |      |  



See
accompanying notes to the consolidated financial statements.





F-8







China
Modern Agricultural Information, Inc.

and
subsidiaries



CONSOLIDATED
STATEMENTS OF CASH FLOWS (CONTINUED)

FOR
THE years ENDED JUNE 30, 2017 AND 2016(IN U.S. $)



|                                                    |  | 2017 |            |   | 2016 |  
|--------------------------------------------------- |  | ---- | ---------- | - | ---- | -
|                                                    |  |      |            |   |      |  
|Effect of exchange rate changes on cash             |  |      | (1,592,909 | ) |      |  
|                                                    |  |      |            |   |      |  
|Net increase (decrease) in cash                     |  |      | 22,461,658 |   |      |  
|Cash, beginning of year                             |  |      | 30,780,198 |   |      |  
|                                                    |  |      |            |   |      |  
|Cash, end of year                                   |  | $    | 53,241,856 |   |      | $
|                                                    |  |      |            |   |      |  
|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          |  | $    | 154,000    |   |      | $
|                                                    |  |      |            |   |      |  
|Construction in Process transferred from prepayment |  | $    | -          |   |      | $
|                                                    |  |      |            |   |      |  
|Construction in Process not paid                    |  | $    | -          |   |      | $
|                                                    |  |      |            |   |      |  
|Dividend declared not paid                          |  | $    | -          |   |      | $



See
accompanying notes to the consolidated financial statements.



F-9









China Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)





|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 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”).



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-10







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|1. | ORGANIZATION
(CONTINUED)
|-- | ------------------------



In
order to further reinforce Jiasheng Consulting’s rights to control and 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.



The
exchange agreement transaction constituted a reverse takeover transaction. Accordingly, reverse takeover accounting was adopted
for the preparation of the consolidated financial statements. As a result, the consolidated financial statements are issued under
the name of China Modern Agricultural Information, Inc. (the legal acquirer), but are a continuation of the consolidated financial
statements of Value Development (the accounting acquirer) and the VIE its 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, 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.



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.



On
November 23, 2011, Zhongxian Information acquired 100% of the equity interest of Shangzhi Yulong Co., Ltd. (“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.





F-11







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)





|1. | ORGANIZATION
(CONTINUED)
|-- | ------------------------







On
July 16, 2015, the Company, transferred 100% of the issued and outstanding shares 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 Company through the Company’s wholly-owned subsidiary, Hope Dairy Holdings Ltd. (“Hope Diary,” a British
Virgin Islands company). China Dairy was newly incorporated in January 2015 and did not have any significant assets or liabilities,
or business operations, which was 100% owned by Company’s PRC corporate advisor, who formed China Diary on behalf of the
Company. Further, the sole shareholder transferred 60% of the total outstanding shares of China Dairy to Hope Diary and 40% to
various shareholders and consultants of the Company (as described below) for nominal consideration.



These
transactions involve no consideration received or paid as Value Development and China Dairy are under common control by the Company
and this transaction is a restriction to the Company’s interests in Value Development.





F-12







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|1. | ORGANIZATION
(CONTINUED)
|-- | ------------------------



The
40% of the 10,000 shares of China Dairy were transferred from the sole shareholder of China Diary 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.:



| |                                                      |  | Original Shares |        |  | After bonus shares issued | 
| | ---------------------------------------------------- |  | --------------- | ------ |  | ------------------------- | 
| |                                                      |  |                 |        |  |                           | 
| | 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 |  |                           | 



Value
Development is the sole owner of Value Development Group Limited, which is the sole owner of Harbin Jiasheng Consulting Managerial
Co. Ltd., 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 Diary’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.



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 Zhengxin Liu and Youliang Wang, who are also the
members of the Company’s Board of Directors, for RMB10,000 (approximately $1,554).





F-13







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)





|1. | ORGANIZATION
(CONTINUED)
|-- | ------------------------



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.



As
a result of the entry into the foregoing agreements, the Company has a corporate structure as set forth below:







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%.





F-14







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|-- | ------------------------------------------



Basis
of Accounting and Presentation



The
accompanying consolidated financial statements have been prepared 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 Dairy, China Dairy (Hope Dairy’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.



The
audited consolidated financial statements of the Company as of June 30, 2017 and for the years ended June 30, 2017 and 2016, 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.



Variable
Interest Entity



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.



Zhongxian
Information and its subsidiaries (collectively, the “Chinese VIE”) have 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-15







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)





|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|-- | ------------------------------------------------------



Variable
Interest Entity (continued)



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.



On
September 16, 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.



Foreign
Currency 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 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-16







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|-- | ------------------------------------------------------





The
exchange rates used to translate amounts in RMB and Australian dollars (the “A$”) into US dollars for preparing the
consolidated financial statements are as follows:



Foreign
Currency Translations (continued)





| |                                                                                                                                        |  | June 30, 2017 |        |  | June 30, 2016 | 
| | -------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | ------ |  | ------------- | 
| |                                                                                                                                        |  | RMB           |        |  | A$            | 
| | Balance sheet items, except for stockholders’ equity, as of period end                                                                 |  |               | 0.1475 |  |               | 
| |                                                                                                                                        |  |               |        |  |               | 
| | Amounts included in the statements of income, statement of changes in stockholders’ equity and statements of cash flows for the period |  |               | 0.1469 |  |               | 





Foreign
currency translation adjustments of $(2,520,764) and $(11,711,703), respectively, for the years ended June 30, 2017 and 2016,
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 740-30-25-17, “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 now allow convertibility of the 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 US dollar and other currencies may fluctuate and is affected by, among other things, changes in China’s
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.





F-17





China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)





|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|-- | ------------------------------------------------------



Revenue
Recognition



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.



Milk
sales revenue is recognized when the title has been 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
Due to Operations in PRC



The
Company’s operations may be 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.





F-18





China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)





|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|-- | ------------------------------------------------------



Use
of Estimates



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.



Fair
Value of Financial Instruments



FASB
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:



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.



ASC
820 requires the use of observable market data, when available, in 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.





F-19







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)





|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|-- | ------------------------------------------------------



Fair
Value of Financial Instruments (continued)



The
Company did not identify any assets or liabilities that are required to be presented at fair value on a recurring basis. Carrying
values of non-derivative financial instruments, 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



Advertising
costs are charged to operations when incurred. Advertising costs are $221,322 and $62,929, respectively, for the years ended June
30, 2017 and 2016.



Cash
and Cash Equivalents



The
Company considers all demand and time deposits and all highly liquid investments with an original maturity of three months or
less to be cash equivalents.



Accounts
Receivable



Accounts
receivable is stated at cost, 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
credit term for its milk sales and usually receives the payment in the following month. The Company considers all accounts receivable
at June 30, 2017 and 2016, 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.





F-20





China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)





|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|-- | ------------------------------------------------------



Inventories



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



The
Company estimates an inventory allowance for excessive or unusable inventories. Inventory amounts are reported net of such allowances
if any. There was no allowance for excessive or unusable inventories as of June 30, 2017 and 2016.



Prepaid
Expenses



Prepaid
expenses as of June 30, 2017 and 2016 mainly represent the prepayments of approximately $1,375,000 and $1,216,900, respectively
for prepaid cow insurance expenses.



Prepaid
Land Leases



Prepaid
land leases represent the prepayment for grassland rental (see Note 7).



Property,
Plant and Equipment



Property,
plant and equipment are recorded at cost, less accumulated depreciation. Cost includes the price paid 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.



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



| | 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





F-21





China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)





|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|-- | ------------------------------------------------------



Impairment
of Long-lived Assets



The
Company utilizes FASB ASC 360, “Property, Plant and Equipment” (“ASC 360”), which addresses the
financial accounting and reporting for the recognition and measurement of impairment losses for long-lived assets. 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 years ended June 30, 2017 and 2016.



Biological
Assets



Biological
assets consist of dairy cows for milking purposes and breeding.



Immature
Biological Assets



Immature
biological assets are recorded 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.



Mature
Biological Assets



Mature
biological assets are recorded at their original purchase price or the weighted average immature biological asset transfer cost.
Depreciation is provided over the 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, 2017 and 2016, a gain (loss) of $3,579,816 and $(373,108), respectively, on the sale of the
adult cows is included in non-operating income (expenses) in the accompanying consolidated statements of income and other comprehensive
income. (See Note 5)





F-22







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|-- | ------------------------------------------------------



Biological
Assets (continued)



The
Company reviews the carrying value of 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 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, 2017 and 2016.



Income
Taxes



The
Company accounts for income taxes in accordance with FASB 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 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, 2017 and 2016, undistributed earnings allocated to Zhongxian Information
were approximately $224,700,000 and $192,800,000, respectively.



ASC
740 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, 2017 and 2016, the Company does
not have a liability for any uncertain tax positions.





F-23







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)





|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|-- | ------------------------------------------------------



Income
Taxes (Continued)



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



United
States



The
Company is subject to United States tax at graduated rates from 15% to 35%. No provision for income tax in the United States has
been made as the Company had no U.S. taxable income for the years ended June 30, 2017 and 2016.



BVI



Value
Development and Hope 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%.



Hong
Kong



Value
Development Group Limited and 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.



PRC



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 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.





F-24







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
|-- | ------------------------------------------------------



Net
Income (Loss) Per 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
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, 2017 and 2016.



Statutory
Reserve Fund



Pursuant
to the 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 capital. 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, 2017 and 2016, the required statutory reserve funds have been fully funded.



|3. | Recently
Issued Accounting Standards
|-- | ------------------------------------



In
August 2016, the FASB issued new guidance which clarifies the classification of certain cash receipts and cash payments in the
statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from
a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The new standard
is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption
is permitted. The Company is evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.





F-25







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



| | 3. | Recently
                                         Issued Accounting Standards(CONTINUED)
| | -- | ----------------------------------------------------------------------------------------



In
June 2016, the FASB issued new authoritative accounting guidance on credit losses on financial instruments which replaces the
incurred-loss impairment methodology. The new guidance requires immediate recognition of estimated credit losses expected to occur
for most financial assets and certain other instruments. The standard is effective for the Company in the first quarter of 2020;
however early adoption is permitted beginning in the first quarter of 2019. The Company is currently evaluating whether this standard
will have a material impact on its financial statements.



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
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.



In
February 2016, the FASB issued Accounting Standards Update 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.





F-26







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



| | 3. | Recently
                                         Issued Accounting Standards(CONTINUED)
| | -- | ----------------------------------------------------------------------------------------



In
January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement
of Financial Assets and Financial Liabilities. 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.



In
September 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-16: 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.



In
August 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")
2015-14, 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.





F-27







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|4. | Property,
plant and equipment
|-- | -----------------------------



Property,
plant and equipment are summarized as follows:



| |                                    |  | June 30, 2017 |            |   | June 30, 2016 |  
| | ---------------------------------- |  | ------------- | ---------- | - | ------------- | -
| |                                    |  |               |            |   |               |  
| | Machinery and equipment            |  | $             | 3,789,997  |   |               | $
| | Automobiles                        |  |               | 2,209,169  |   |               |  
| | Building and building improvements |  |               | 26,333,608 |   |               |  
| |                                    |  |               |            |   |               |  
| |                                    |  |               | 32,332,774 |   |               |  
| | Less: accumulated depreciation     |  |               | (5,710,212 | ) |               |  
| | Construction in process            |  |               | -          |   |               |  
| |                                    |  |               |            |   |               |  
| | Property, plant and equipment, net |  | $             | 26,622,562 |   |               | $



Construction
in Progress (“CIP”) contains amounts paid and accrued for completed new construction which has not been placed into
service as of June 30, 2016. No depreciation has been taken on CIP as of June 30, 2016. Depreciation expense charged to operations
for the years ended June 30, 2017 and 2016 was $2,412,060 and $1,950,157, respectively.



On
January 20, 2016, the Company signed an agreement with Harbin Donghui Architecture Co., Ltd to construct a new forage production
plant. The total agreement amount is RMB 45,615,000 (US $ 6,864,387). Per the agreement, the company is required to pay according
to progress completion for different parts of the plant. As of June 22, 2017, the company paid RMB 48,295,000 (US $ 7,094,536).
On June 22, 2017, the Company signed a disposal agreement with a forage production company to sell the CIP at $7,491,900 including
VAT (RMB 51,000,000). The net book value of the CIP at the date of the disposal was $7,094,516. The total VAT and surcharges on
the selling price was $399,568. There was a loss of $2,204 on the disposal. The Company fully received the sales consideration
of $7,491,900 as of June 30, 2017.





F-28







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|5. | Biological
assets
|-- | -----------------



Biological
assets consist of the following:



| |                                |  | June 30, 2017 |            |   | June 30, 2016 |  
| | ------------------------------ |  | ------------- | ---------- | - | ------------- | -
| |                                |  |               |            |   |               |  
| | Immature biological assets     |  | $             | 33,409,704 |   |               | $
| | Mature biological assets       |  |               | 45,460,518 |   |               |  
| |                                |  |               |            |   |               |  
| |                                |  |               | 78,870,222 |   |               |  
| | Less: accumulated depreciation |  |               | (5,758,121 | ) |               |  
| |                                |  |               |            |   |               |  
| | Biological assets, net         |  | $             | 73,112,101 |   |               | $



On
November 1, 2016, Xinhua Cattle purchased 3,000 adult cows at a total price of RMB 45,000,000 (US $6,37,500). On May 2, 2017,
Xinhua Cattle also purchased 2,500 adult cows at a total price of RMB 37,500,000 ($5,531,250).



Xinhua
Cattle sold a total of 6,286 female calves to outside parties at a total price of RMB 27,137,500 (US $3,986,499 in the year ended
June 30, 2017. The net value of these female calves was approximately RMB 39,135,557 (US $5,749,000). Xinhua Cattle also sold
473 pre-adult cows at RMB 3,216,400 (US$472,489) with a net value of RMB 9,650,258 (US$ 1,417,600) in the year ended June 30,
2017.



On
November 1, 2016, Xinhua Cattle sold 2,000 newly purchased adult cows to 6 local farmers at a total price of RMB 34,000,000 (US
$4,994,600) with a net value of RMB 30,000,000 (US $4,407,000). On November 3, 2016, Xinhua Cattle sold 2,000 adult cows to another
6 local farmers at a total price of RMB 24,000,000 (US $3,525,600) with a net residual value of RMB 14,909,375 (US $2,190,187).
On December 1, 2016, Xinhua Cattle sold 130 adult cows to one local farmer at a total price of RMB 1,040,000 (US $152,776) with
a net residual value of RMB 717,556 (US $105,409). On May 2, 2017, Xinhua Cattle sold 2,511 adult cows to 8 local farmers at a
total price of RMB 23,266,900 (US$ 3,417,908) with a net residual value of RMB 15,489,125 (US$ 2,275,352). On November 4, 2016,
Xinhua Cattle also sold 1,542 adult cows to an outside party at a total price of RMB 6,915,550 (US $1,015,894) with a net residual
value of RMB 7,892,837 (US $1,159,458).





F-29







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|5. | Biological
assets (continued)
|-- | -----------------------------



On
November 2, 2016, Yulong Cattle purchased 5,000 adult cows at a total price of RMB 75,000,000 (US $10,882,500). On June 1, 2017,
Yulong Cattle also purchased 200 adult cows at a total price of RMB 3,000,000 (US $442,500).



Yulong
Cattle sold 1,919 female calves to outside parties at a total price of RMB 8,320,000 (US $1,222,208) in the year ended June 30,
2017. The net value of these female calves was approximately RMB 7,742,000 (US $1,137,000).



On
November 1, 2016, Yulong Cattle sold 2,317 adult cows to 8 local farmers at a total price of RMB 19,033,000 (US $2,795,948) with
a net value of RMB 18,650,864 (US $2,739,812. On November 2, 2016, Yulong Cattle sold 2,000 new purchased adult cows to another
8 local farmers at a total price of RMB 34,000,000 (US $4,994,600) with a net residual value of RMB 30,000,000 (US $4,407,000).
Local farmers started to pay principle payment for the above disposal sinche the three months ended March 31, 2017. On November
2, 2016, Yulong Cattle sold 142 adult cows to an outside party at a total price of RMB 994,000 (US $146,019) with a net residual
value of RMB 1,063,243(US $156,190). On May 26, 2017, Yulong Cattle sold 62 adult cows to an outside party at a total price of
RMB 434,000 (63,755) with a net residual value of RMB 468,850 (US $68,874)



Depreciation
expense for the years ended June 30, 2017 and 2016 was $4,779,286 and $2,878,298, respectively, all of which was included in cost
of goods sold in the consolidated statements of income and other comprehensive income.



|6. | Notes
Receivable
|-- | ----------------



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



In
May 2017, December 2016, November 2016, September 2011, August 2011 and June 2011, Xinhua Cattle sold 2,511, 130, 4,000, 3,787,
5,635, and 2,000 respectively of its cows to local farmers. 2,000 of the cows sold were purchased from outside parties for $4,407,000.
The remaining cows sold were raised by Xinhua.



In
November 2016, November 2014 and December 2014, Yulong sold 4,317, 3,714 and 2,955 cows respectively, to local farmers. 5,500
of the cows sold were purchased from outside parties for $8,996,000. The remaining cows sold were raised by Yulong.





F-30







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|6. | Notes
Receivable (continued)
|-- | ----------------------------



The
company had agreements with local farmers entered into June 2011, for their purchase of cows to be collected over five years,
with a minimum payment of 20% of the sales price to be paid each year. The notes were recorded at their present value with a discount
rate of

12%,
which was 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. As of June 30, 2017, the farmers had fully repaid the principal payments.



Pursuant
to agreements for the sale of cows 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. 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.



Pursuant
to the agreements signed in November 2016, December 2016 and May 2017, the sales price will be collected in monthly installments
plus interest at 5% 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 a 20% of monthly milk sales generated from the cows sold. The 20% 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. While the 20% 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.



During
the years ended June 30, 2017 and 2016, the Company received principal and interest payments of $3,403,678 and $2,300,347, respectively.
Commission income for the years ended June 30, 2017 and 2016, was $17,998,410 and $19,486,432, respectively, under these agreements.





F-31







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)





|6. | Notes
Receivable (continued)
|-- | ----------------------------



The
receivable related to the sales of cows is included in notes receivable in the consolidated balance sheets as of June 30, 2017
and 2016. The related commission receivable of $7,206,564 and $6,962,080 at June 30, 2017 and 2016, respectively, is included
in accounts receivable in the consolidated balance sheets.



Notes
receivable at June 30, 2017 and 2016 consists of the following:



| |                             |  | June
                                         30, 2017 |            |   | June 30, 2016 |  
| | --------------------------- |  | ------------------------------------------------------ | ---------- | - | ------------- | -
| |                             |  |                                                        |            |   |               |  
| | Notes receivable            |  | $                                                      | 23,855,122 |   |               | $
| | Less: discount for interest |  |                                                        | -          |   |               |  
| |                             |  |                                                        |            |   |               |  
| |                             |  |                                                        | 23,855,122 |   |               |  
| | Less: current portion       |  |                                                        | (4,661,775 | ) |               |  
| |                             |  |                                                        |            |   |               |  
| | Non-current portion         |  | $                                                      | 19,193,347 |   |               | $



Future
maturities of notes receivable as of June 30, 2017 are as follows:



| | Year Ending June 30, |  |   |           
| | -------------------- |  | - | ----------
| |                      |  |   |           
| | 2018                 |  | $ | 4,662,000 
| | 2019                 |  |   | 4,359,000 
| | 2020                 |  |   | 3,676,000 
| | 2021                 |  |   | 3,542,000 
| | 2022                 |  |   | 2,826,000 
| | Thereafter           |  |   | 4,790,000 
| |                      |  |   |           
| |                      |  | $ | 23,855,000







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-32







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|7. | LeaseS
|-- | ------



All
land in 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 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. On June 22, 2017, the Company subleased
183,335 square meters land of the 250,000 square meter land to a forage production company at the price of RMB 25,300,000 (US
$3,716,570). The remaining repayment of the 183,335 square meters land is RMB25,254,167 (US $3,709,837). There is a gain of the
sublease of RMB 45,833 (US $6,733). The remaining prepayment of $1,352,083 and $5,285,680 is included in prepaid land lease in
the consolidated balance sheets as of June 30, 2017 and 2016, respectively. The lease provides for renewal options.



On
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. The lease required the Company to prepay the ten year rental of RMB 30,000,000
(US$4,686,000). The related prepayment of $1,880,625 and $2,370,092 is included in prepaid land lease in the consolidated balance
sheets as of June 30, 2017 and 2016, 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 $10,378,572 and $10,820,258 is included in prepaid land lease in the consolidated balance sheets as of June 30, 2016 and 2016,
respectively. The lease provides for renewal options.





F-33







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|7. | LeaseS
(CONTINUED)
|-- | ------------------



On
May 7, 2015, the Company obtained another “land use right” for 250,000 square meters of land, from May 7, 2015 to
May 6, 2045. In addition, the Company also leased buildings on the land which includes cowsheds, an office building and a flat
building. The lease period for these buildings is the same as the land. The Company recorded the prepayment of RMB 74,847,600
(US$12,058,000) as prepaid leases. The prepaid lease is being amortized over the lease term of 30 years using the straight-line
method. The unamortized balance of $10,242,686 and $10,825,203 is included in prepaid leases in the consolidated balance sheets
as of June 30, 2017 and June 30, 2016, respectively.



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 $15,311,494 and $16,182,280 is included in prepaid lease
in the consolidated balance sheets as of June 30, 2017 and 2016, respectively.



Rent
expense charged to operations for the years ended June 30, 2017 and 2016 was $1,684,866 and $1,789,248, respectively.



|8. | EMPLOYMENT
AGREEMENTS
|-- | ---------------------



The
Company had Employment Agreements with its executive officers and directors for a one year period with renewal options after expiration,
with the current agreements expiring on June and August, 2017. For the years ended June 30, 2017 and 2016, compensation under
these agreements was $276,343 and $187,000, respectively.



At
June 30, 2017, the future commitment under these agreements is approximate $96,000.





F-34







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|9. | Related
party transactions
|-- | --------------------------



In
July 2016 and April 2017, Xinhua Cattle contributed total net profit of $6,491,798 and $92,772, respectively, to Zhongxian Information
and the 1% owned minority shareholder. The total represents the net profit of Xinhua Cattle for the years ended June 30, 2008
and 2007, January 2016 and February 2016.



In
March 2015, Zhongxian Information and the Executive Chairman of the Company entered into a loan agreement pursuant to which the
Executive Chairman provides a loan facility to Zhongxian Information, which is non-interest bearing and due on demand. The maximum
amount of the loan is RMB 50,000,000 (US $7,845,000). The loans outstanding were $1,918,341 and $1,672,707 as of June 30, 2017
and 2016, respectively.



In
2012, CMCI issued 9,000,000 shares of common stock, valued at $0.34 per share, for a total of RMB 19,428,571 (US $3,060,000) to
the shareholder of Yulong on behalf Zhongxian Information for the acquisition of Yulong. Zhongxian Information recorded the
value of these shares as due to CMCI. China Dairy paid CMCI on June 29, 2016.



|10. | Income
taxes
|--- | ------------



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





| |          |  | 2017 |   |  | 2016 |  
| | -------- |  | ---- | - |  | ---- | -
| |          |  |      |   |  |      |  
| | Current  |  | $    | - |  |      | $
| | Deferred |  |      | - |  |      |  
| |          |  |      |   |  |      |  
| |          |  | $    | - |  |      | $









F-35







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|10. | Income
taxes (continued)
|--- | ------------------------



The
following table reconciles the effective income tax rates with the statutory rates for the years ended June 30:



| |                           |  | 2017 |        |    | 2016 | 
| | ------------------------- |  | ---- | ------ | -- | ---- | 
| |                           |  |      |        |    |      | 
| | Statutory rate            |  |      | 25.00  | %  |      | 
| | Allowance                 |  |      | 0.08   | %  |      | 
| | Other                     |  |      | (25.08 | %) |      | 
| |                           |  |      |        |    |      | 
| | Effective income tax rate |  |      | -      |    |      | 



The
stock compensation of approximately $37,762,400 in the year ended June 30, 2016 would be deductible only to the U.S. parent company
and accordingly, there is no deferred tax benefit to be recognized.



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.



The
tax laws of China permit the carry forward of net operating losses for a period of five years. 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. 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 Yulong under the
Enterprise Income Tax Law that Chinese resident enterprise is an exemption of dividend income received from another Chinese resident
enterprise.





F-36







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|10. | Income
taxes (continued)
|--- | ------------------------



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





| |                                                                                    |  | June 30, 2017 |             |   | June 30, 2016 |  
| | ---------------------------------------------------------------------------------- |  | ------------- | ----------- | - | ------------- | -
| |                                                                                    |  |               |             |   |               |  
| | Net operating loss carryforwards                                                   |  | $             | 520,965     |   |               | $
| | Bargain purchase gain                                                              |  |               | (1,430,399  | ) |               |  
| | Undistributed earnings of subsidiaries under PRC law upon VIE structure terminated |  |               | (38,636,474 | ) |               |  
| |                                                                                    |  |               |             |   |               |  
| |                                                                                    |  |               | (39,545,908 | ) |               |  
| | Less valuation allowance                                                           |  |               | (520,965    | ) |               |  
| |                                                                                    |  |               |             |   |               |  
| | Net deferred tax (liabilities)                                                     |  | $             | (40,066,873 | ) |               | $



At
June 30, 2017 and 2016, Zhongxian Information had unused operating loss carry-forwards of approximately $2,084,000 and $1,990,000,
respectively, expiring in various years through 2020. The Company has established a valuation allowance of approximately $521,000
and $498,000 against the deferred tax asset related to the net operating loss carry forward at June 30, 2017 and 2016, due to
the uncertainty of realizing the benefit.



The
Company’s tax filings are subject to examination by the tax authorities. The tax years from 2010 to 2016 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 2014, 2015 and 2016. The year ended June 30, 2013 was examined by the Internal Revenue Service and resulted in no
adjustment.





F-37







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|11. | CONCENTRATION
OF CREDIT RISK
|--- | ----------------------------



Substantially
all of the Company’s bank accounts are located in The People’s Republic of China and are not covered by protection
similar to that provided by the FDIC on funds held in United States banks.



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



Three
customers accounted for approximately 98% and 72% of milk sales for the years ended June 30, 2017 and 2016, respectively. Three
and four customers accounted for approximately 72% and 71% of accounts receivable at June 30, 2017 and 2016, respectively.



Ninety-two
farmers and seventy-six farmers accounted for the notes receivable at June 30, 2017 and 2016, respectively.



F-38







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



|12. | Parent
company only 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, 2017 and 2016, statements of income for the years ended June 30, 2017 and 2016, and statements of cash flows for
the years ended June 30, 2017 and 2016:



Condensed
Balance Sheets



| | ASSETS                                                                                                 |  | June 30, 2017 |             |  | June 30, 2016 |  
| | ------------------------------------------------------------------------------------------------------ |  | ------------- | ----------- |  | ------------- | -
| |                                                                                                        |  |               |             |  |               |  
| | Cash                                                                                                   |  | $             | 3,481,282   |  |               | $
| | Loan Receivable                                                                                        |  |               | -           |  |               |  
| | Investment in subsidiaries                                                                             |  |               | 109,159,064 |  |               |  
| |                                                                                                        |  |               |             |  |               |  
| | TOTAL ASSETS                                                                                           |  | $             | 112,640,346 |  |               | $
| |                                                                                                        |  |               |             |  |               |  
| | LIABILITIES
    AND stockholders’ EQUITY                                                               |  |               |             |  |               |  
| |                                                                                                        |  |               |             |  |               |  
| | Stockholder loans                                                                                      |  | $             | 1,918,341   |  |               | $
| |                                                                                                        |  |               |             |  |               |  
| | Stockholders’ equity                                                                                   |  |               |             |  |               |  
| | Common stock, $0.001 par value; 75,000,000 shares authorized; 53,100,000 shares issued and outstanding |  |               | 53,100      |  |               |  
| | Additional paid-in capital                                                                             |  |               | 49,709,237  |  |               |  
| | Retained earnings                                                                                      |  |               | 62,878,009  |  |               |  
| |                                                                                                        |  |               |             |  |               |  
| | TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                             |  | $             | 112,640,346 |  |               |  







F-39







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



| | 12. | Parent
                                         company only condensed financial information (CONTINUED)
| | --- | --------------------------------------------------------------------------------------------------------



Condensed
Statements of Income



| |                                                   |  | For the years ended 
June 30, |           
| | ------------------------------------------------- |  | ----------------------------- | ----------
| |                                                   |  | 2017                          |           
| |                                                   |  |                               |           
| | Revenues                                          |  |                               |           
| | Share of earnings from investment in subsidiaries |  | $                             | 22,336,574
| |                                                   |  |                               |           
| | Operating expenses                                |  |                               |           
| | General and administrative                        |  |                               | 178,000   
| |                                                   |  |                               |           
| | Net income (loss)                                 |  | $                             | 22,158,574





F-40







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



| | 12. | Parent
                                         company only condensed financial information (CONTINUED)
| | --- | --------------------------------------------------------------------------------------------------------



Condensed
Statements of Cash Flows



| |                                                                                            |  | For the years ended June 30, |            
| | ------------------------------------------------------------------------------------------ |  | ---------------------------- | -----------
| |                                                                                            |  | 2017                         |            
| |                                                                                            |  |                              |            
| | Cash flows from operating activities                                                       |  |                              |            
| | Net income (loss)                                                                          |  | $                            | 22,158,574 
| | Adjustments to reconcile net income to net cash provided by (used in) operating activities |  |                              |            
| | Share of earnings from investment in subsidiaries and VIE                                  |  |                              | (22,336,574
| | Stock compensation for shareholder and consultants                                         |  |                              | -          
| | Decrease in loan receivable                                                                |  |                              | -          
| | Increase in loan from shareholder                                                          |  |                              | 245,634    
| |                                                                                            |  |                              |            
| | Net cash provided by operating activities                                                  |  |                              | 67,634     
| |                                                                                            |  |                              |            
| | Bank interests income                                                                      |  |                              | 7,627      
| | Effect of exchange rate changes on cash                                                    |  |                              | 338,890    
| |                                                                                            |  |                              |            
| | Net change in cash                                                                         |  |                              | 414,151    
| | Cash, beginning of period                                                                  |  |                              | 3,067,131  
| |                                                                                            |  |                              |            
| | Cash, end of period                                                                        |  | $                            | 3,481,282  



Basis
of Presentation



The
Company records its investment in its subsidiaries under the equity method of accounting. Such 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.





F-41







China
Modern Agricultural Information, Inc.

and
subsidiaries



NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS

FOR THE YEARS
ended JUNE 30, 2017 AND 2016 (IN U.S. $)



| | 12. | Parent
                                         company only condensed financial information (CONTINUED)
| | --- | --------------------------------------------------------------------------------------------------------



Basis
of Presentation (continued)



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 omitted. The 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.



There
were no cash transactions in the US parent company during the years ended June 30, 2017 and 2016.



Restricted
Net Assets



Under PRC laws and regulations,
the Company’s PRC subsidiaries are restricted in their ability to transfer certain of their net assets to the Company in
the form of dividend payments, loans or advances. The restricted net assets of the Company’s PRC subsidiaries and amounted
to $155,919,882 and $92,173,317 as of June 30, 2017 and 2016, 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. RMB is 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.



Schedule
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. For 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.



|13. | Subsequent event
|--- | ----------------





On June 29, 2017, Xinhua Cattle
signed with Longing Xiandai Farm to purchase 4,000 adult cows at RMB 15,000 (approximately $2,211) each for a total price of RMB
60,000,000 (approximately $8,844,000). Xinhua Cattle fully paid the purchase consideration on July 3, 2017 and all the cows were
delivered at the same day.



On August 28, 2017, Yulong Cattle
signed with Mengniu to terminate fresh milk purchase agreement. The agreement will be effective in September 1, 2017.





F-42







PART
IV



Item
15. EXHIBITS



(a)
Exhibits



|Exhibit
    Number |  | Description                                                                                                           
|------------------ |  | ----------------------------------------------------------------------------------------------------------------------
|                   |  |                                                                                                                       
|31.1*              |  | Certifications of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002               
|31.2*              |  | Certifications of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002               
|32.1+              |  | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|32.2+              |  | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



|* | Filed
    herewith                                                                   
|- | -------------------------------------------------------------------------------------
|+ | In
    accordance with the SEC Release 33-8238, deemed being furnished and not filed.





2







SIGNATURES





Pursuant to the requirements of Section
13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



|                       | CHINA MODERN AGRICULTURAL INFORMATION, INC.
|---------------------- | -------------------------------------------
|                       |                                            
|Dated: October 2, 2017 | By:                                        
|                       |                                            
|                       |                                            
|                       |                                            
|Dated: October 2, 2017 | By:                                        
|                       |                                            
|                       |                                            



Pursuant to the requirements of the Securities
Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities and
on the dates indicated.



|Name              |  | Title                                |  | Date               
|----------------- |  | ------------------------------------ |  | -------------------
|                  |  |                                      |  |                    
|/s/ Enjia Liu     |  | Chairman of the Board of Directors   |  |                    
|Enjia Liu         |  |                                      |  | October
    2, 2017
|                  |  |                                      |  |                    
|/s/ Youliang Wang |  | Chief Executive Officer and Director |  |                    
|Youliang Wang     |  | (Principal Executive Officer)        |  | October 2, 2017    
|                  |  |                                      |  |                    
|/s/ Yanqin Shan   |  | Director                             |  |                    
|Youqin Shan       |  |                                      |  | October 2, 2017    
|                  |  |                                      |  |                    
|/s/ Yanyan Liu    |  | Chief Financial Officer              |  |                    
|Yanyan Liu        |  | (Principal Financial Officer)        |  | October 2, 2017    





3