RELATED PARTY TRANSACTIONS
 12 Months Ended
Jun. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
NOTE 20 -
RELATED PARTY TRANSACTIONS
 
The related party relationships and related party transactions are listed as follows:
 
Related party relationships
 
Name of related parties
 
Relationship with the Company
   
Shenhua Hollysys Information Technology Co., Ltd. (“Shenhua Information”) 20% owned by Beijing Hollysys
China Techenergy Co., Ltd. (“China Techenergy”) 40% owned by Beijing Hollysys
Beijing Hollysys Electric Motor Co., Ltd. (“Electric Motor”) 40% owned by Beijing Hollysys
Beijing Hollysys Machine Automation Co., Ltd. (“Hollysys Machine”) 30% owned by Hollysys (Beijing) Investment Co., Ltd. (“Hollysys Investment”)
Heilongjiang Ruixing Technology Co., Ltd. (“Heilongjiang Ruixing”) 6% owned by Beijing Hollysys
Beijing IPE Biotechnology Co., Ltd. (“Beijing IPE”) 22.02% owned by Beijing Hollysys
Beijing Hollycon Medicine & Technology. Co., Ltd. (“Hollycon”) 30% owned by Hollysys Group Co., Ltd.(“Hollysys Group”)
Shenzhen HollySys Intelligent Technologies Co., Ltd. (“Shenzhen HollySys”) 60% owned by Beijing Hollysys Intelligent Technologies Co., Ltd. (“Hollysys Intelligent”)
 
Due from related parties
 
  
June 30,
 
  
2017
  
2018
 
       
China Techenergy $28,778  $29,182 
Shenhua Information  3,267   3,570 
Hollysys Machine  965   853 
Hollycon  79   51 
Shenzhen HollySys  2   22 
Heilongjiang Ruixing  1,049   - 
Beijing IPE  2   - 
         
  $34,142  $33,678 
 
The Company’s management believes that the collection of amounts due from related parties is reasonably assured and accordingly and no provision had been made for these balances.
 
Due to related parties
 
  
June 30,
 
  
2017
  
2018
 
       
China Techenergy $1,117  $4,141 
Hollysys Machine  817   828 
Shenhua Information  353   348 
Electric Motor  11   34 
Beijing IPE  2   2 
Hollycon  1   - 
         
  $2,301  $5,353 
 
Transactions with related parties
 
Purchases of goods and services from:
 
  
Year ended June 30,
 
  
2016
  
2017
  
2018
 
          
Electric Motor $354  $29  $77 
Hollycon  -   8   16 
Hollysys Machine  555   749   - 
             
  $909  $786  $93 
 
Sales of goods and integrated solutions to:
 
  
Year ended June 30,
 
  
2016
  
2017
  
2018
 
          
China Techenergy $3,657  $10,842  $11,519 
Hollycon  -   108   225 
Shenhua Information  847   765   86 
Hollysys Machine  235   167   - 
Beijing IPE  -   7   - 
             
  $4,739  $11,889  $11,830 
 
Operating lease income from:
 
  
Year ended June 30,
 
  
2016
  
2017
  
2018
 
          
Hollycon  -   602   731 
Hollysys Machine  40   -   - 
             
  $40  $602  $731 
 
The Company sells automation control systems to China Techenergy which is used for non-safety operations control in the nuclear power industry. China Techenergy incorporates the Company’s non-safety automation control systems with their proprietary safety automated control systems to provide an overall automation and control system for nuclear power stations in China. The Company is not a party to the integrated sales contracts executed between China Techenergy and its customers. The Company’s pro rata shares of the intercompany profits and losses are eliminated until realized through a sale to outside parties, as if China Techenergy were a consolidated subsidiary.
 
The Company sells automation control systems to Shenhua Information which is used for operations control in the information automation industry. Shenhua Information incorporates the Company’s automation control systems with their proprietary automated remote control systems to provide an overall automation and control system to its customers. The Company is not a party to the integrated sales contracts executed between Shenhua Information and its customers. The Company’s pro rata shares of the intercompany profits and losses are eliminated until realized through a sale to an outside party as if Shenhua Information were a consolidated subsidiary.
 
The Company engages Hollysys Machine to sell the Company’s products to end customers. The Company pays commission to Hollysys Machine in exchange for its services. The amount of the commission is determined based on the value of the products sold by Hollysys Machine during the year.
 
The Company entered into an operating lease agreement with Hollycon to lease part of its one building located in Beijing. The lease term is for 1 year from the commencement date of July 1, 2017 to June 30, 2018.
 
Amounts due from and due to the related parties relating to the above transactions are unsecured, non-interest bearing and repayable on demand.