10-Q
2012-11-30
false
Huayue Electronics, Inc.
0001315756
--05-31
31327741
Smaller Reporting Company
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<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 1 – ORGANIZATION AND OPERATIONS </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>Huayue Electronics, Inc. (“Huayue Electronics” or the “Company”) was incorporated under the laws of the State of Delaware on January 13, 2005. The Company was initially named “HXT Holdings, Inc.,” but changed its name to Huayue Electronics, Inc. on November 2, 2011.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On September 2, 2011, Huayue Electronics acquired all of the outstanding capital stock of China Metal Holding, Inc. (“China Metal”), a privately owned corporation formed in the State of Delaware, United States of America, by merging HXT Acquisition Corp., a newly formed Delaware corporation that was wholly owned by the Company, into China Metal. China Metal is a holding company whose only asset, held through a subsidiary, is 100% of the registered capital of Changzhou Huayue Electronics Company, Limited (“Changzhou Huayue”), a limited liability company organized under the laws of the People’s Republic of China (“China” or “PRC”). </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>Changzhou Huayue has been engaged since its formation in developing, manufacturing and selling electrolytic capacitors. Since 2008 Changzhou Huayue has also been engaged in developing, manufacturing and selling energy efficient lighting products, including both high frequency induction lights and light bulbs utilizing a light emitting diode (“LED”).  Changzhou Huayue’s offices and manufacturing facilities are located in China.</p>
<!--egx--><p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b>NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Basis of presentation</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The financial statements reflect the financial position of the Company and its subsidiary, Changzhou Huayue Electronic Co., Ltd., as of November 30, 2012 and May 31, 2012 and the results of operations and cash flows of the Company and its subsidiary, Changzhou Huayue Electronic Co., Ltd., for the three months and six months ended November 30, 2012 and 2011. </p> <p style='margin:0in 0in 0pt'><b> </b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Principles of consolidation</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The consolidated financial statements include the financial statements of China Metal Holding, Inc. and Changzhou Huayue Electronics Co., Ltd. All inter-company transactions and balances are eliminated in consolidation. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Use of estimates</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include: the allowance for bad debt, the valuation of inventory, and estimated useful lives and impairment of property and equipment. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Cash and cash equivalents</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>For purposes of the statement of cash flow, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Accounts Receivable and Allowance for Bad Debt</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>Accounts receivable are stated at net realizable value. An allowance for doubtful accounts is established based on the management’s assessment of the recoverability of accounts and other receivables. A considerable amount of judgment is required in assessing the realization of these receivables, including the current credit worthiness of each customer and the related aging analysis. </p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b><i><u>Inventory</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>Inventory is primarily composed of raw materials and packing materials for manufacturing, work in process, and finished goods. Inventories are valued at the lower of cost or market with cost determined on a weighted average basis. Management compares the cost of inventory with the market value and an allowance is made for writing down the inventory to its market value, if lower than cost. </p> <p style='margin:0in 0in 0pt'><b> </b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Machinery and equipment</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>Machinery and equipment are stated at cost. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and locations for its intended use. Depreciation is calculated using the straight-line method over the following useful lives: </p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr align="left"> <td width="42%" style='padding-right:0px;padding-left:0px;padding-bottom:0px;width:42.7%;padding-top:0px'> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> Machinery, equipment, and automobiles </p></td> <td width="57%" style='padding-right:0px;padding-left:0px;padding-bottom:0px;width:57.3%;padding-top:0px'> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> 7-15 years </p></td></tr></table> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>Expenditures for maintenance and repairs are charged to expense as incurred. Additions, renewals and betterments are capitalized. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Revenue recognition</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The Company’s revenue recognition policies are in compliance with Staff Accounting Bulletin (“SAB”) 104, included in the Codification as ASC 605, <i>Revenue Recognition. </i>Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are recorded as customer deposits. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Customer deposit</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>Revenue from the sale of goods or services is recognized at the time that goods are delivered or services are rendered. Receipts in advance for goods to be delivered or services to be rendered in a subsequent period are carried forward as customer deposit. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Prepaid account</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>Prepaid account represents the payments made and recorded in advance for goods and services received. The Company makes advances for raw materials purchased from certain domestic vendors. In order to maintain a long-term relationship with the vendors, the Company frequently needs to make advances from one and one-half months to three months ahead. The prepaid account was $3,181,292 as of November 30, 2012 and $2,389,547 as of May 31, 2012. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Impairment of long-lived assets</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. An impairment loss, measured based on the fair value of the asset, is recognized if expected future undiscounted cash flows are less than the carrying amount of the assets. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Income taxes</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The Company accounts for income tax under the asset and liability method as stipulated by Accounting Standards Codification (“ASC”) 740, formerly Statement of Financial Accounting Standards (”SFAS”) No. 109, “<i>Accounting for Income Taxes”</i>, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns. Deferred income taxes will be recognized if significant temporary differences between tax and financial statements occur. Valuation allowances are established against net deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. The deferred tax asset at November 30, 2012 and May 31, 2012 were $39,573 and $39,226, respectively. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Value-added tax</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>Sales revenue represents the invoiced value of goods, net of a Value-Added Tax (“VAT”). All of the Company’s products that are sold in the PRC are subject to a Chinese value-added tax at a rate of 17% of the gross sales price. This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing their finished product. </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The Company recorded $142,340 and $134,962 VAT payable net of payments in the financial statements as of November 30, 2012 and May 31, 2012, respectively. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Advertising costs</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>Advertising costs for newspaper and television are expensed as incurred. The Company incurred no advertising costs for the three months ended November 30, 2012 and incurred $6,610 advertising costs for the three months ended November 30, 2011. </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The Company incurred advertising costs of $184 and $8,509 for the six months ended November 30, 2012 and 2011, respectively.</p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Mailing and handling costs</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The Company accounts for mailing and handling fees in accordance with the <i>FASB ASC </i>605-45 (Emerging<i> Issues Task Force </i>(EITF<i>)</i> <i>Issue No.</i> <i>00-10,</i> <i>Accounting for Shipping and Handling Fees and Costs)</i>. T<font style='background:white'>he Company includes shipping and handling fees billed to customers in net revenues. Amounts incurred by the Company for freight are included in cost of goods sold. </font>For the three months ended November 30, 2012 and 2011, the Company incurred $1,127 and $5,663 mailing and handling costs, respectively. For the six months ended November 30, 2012 and 2011, the Company incurred $8,251 and $6,494 mailing and handling costs, respectively.</p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Risks and uncertainties</u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in the North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Fair value of financial instruments </u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due to their short maturities. </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>As of November 30, 2012, the Company did not identify any financial instruments that are required to be presented on the balance sheet at fair value other than those whose carrying amounts approximate fair value due to their short maturities. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Foreign currency translation </u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The accounts of the Company’s Chinese subsidiary are maintained in the RMB and the accounts of the U.S. parent company are maintained in the USD. The accounts of the Chinese subsidiary were translated into USD in accordance with Accounting Standards Codification (“ASC”) Topic 830 “Foreign Currency Matters,” with the RMB as the functional currency for the Chinese subsidiary. According to Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at historical rates and statement of income items are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with ASC Topic 220, “Comprehensive Income.” Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the statements of income. </p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>Translation adjustments resulting from this process amounted to $335,047 and $91,744 as of November 30, 2012 and May 31, 2012, respectively. </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The following exchange rates were adopted to translate the amounts from RMB into United States dollars (“USD$”) for the respective years: </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0" style='width:100%'> <tr style='height:24.75pt'> <td valign="bottom" width="49%" style='padding-right:0in;padding-left:0in;padding-bottom:1.5pt;width:49.06%;padding-top:0in;height:24.75pt'> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p></td> <td valign="bottom" width="17%" style='padding-right:0px;padding-left:0px;padding-bottom:0px;width:17.7%;padding-top:0px;height:24.75pt'> <p align="center" style='margin:0in 7.3pt 0pt 0in;text-align:center'><b>November 30,</b></p></td> <td valign="bottom" width="0%" style='padding-right:0in;padding-left:0in;padding-bottom:1.5pt;width:0.22%;padding-top:0in;height:24.75pt'></td> <td valign="bottom" width="15%" colspan="2" style='padding-right:0px;padding-left:0px;padding-bottom:0px;width:15.18%;padding-top:0px;height:24.75pt'> <p align="center" style='margin:0in 20pt 0pt 0in;text-align:center'><b>May 31,</b></p></td> <td valign="bottom" width="0%" style='padding-right:0in;padding-left:0in;padding-bottom:1.5pt;width:0.06%;padding-top:0in;height:24.75pt'></td> <td valign="bottom" width="17%" colspan="2" style='padding-right:0px;padding-left:0px;padding-bottom:0px;width:17.78%;padding-top:0px;height:24.75pt'> <p align="center" style='margin:0in 20pt 0pt 0in;text-align:center'><b>November 30,</b></p></td></tr> <tr style='height:0.2in'> <td valign="bottom" width="49%" style='padding-right:0in;padding-left:0in;padding-bottom:1.5pt;width:49.06%;padding-top:0in;height:0.2in'> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p></td> <td valign="bottom" width="17%" style='padding-right:0px;padding-left:0px;padding-bottom:0px;width:17.7%;padding-top:0px;height:0.2in'> <p align="center" style='margin:0in 0in 0pt;text-align:center'><b><u>2012</u></b></p></td> <td valign="bottom" width="0%" style='padding-right:0in;padding-left:0in;padding-bottom:1.5pt;width:0.22%;padding-top:0in;height:0.2in'></td> <td valign="bottom" width="15%" colspan="2" style='padding-right:0px;padding-left:0px;padding-bottom:0px;width:15.18%;padding-top:0px;height:0.2in'> <p align="center" style='margin:0in 0in 0pt;text-align:center'><b><u>2012</u></b></p></td> <td valign="bottom" width="0%" style='padding-right:0in;padding-left:0in;padding-bottom:1.5pt;width:0.06%;padding-top:0in;height:0.2in'></td> <td valign="bottom" width="17%" colspan="2" style='padding-right:0px;padding-left:0px;padding-bottom:0px;width:17.78%;padding-top:0px;height:0.2in'> <p align="center" style='margin:0in 0in 0pt;text-align:center'><b><u>2011</u></b></p></td></tr> <tr style='height:24.75pt'> <td valign="bottom" width="49%" style='padding-right:0px;padding-left:0px;background:#cceeff;padding-bottom:0px;width:49.06%;padding-top:0px;height:24.75pt'> <p style='margin:0in 0in 0pt'><b>Period End RMB Exchange Rate (RMB/USD$) </b></p></td> <td valign="top" width="17%" style='padding-right:0px;padding-left:0px;background:#cceeff;padding-bottom:0px;width:17.7%;padding-top:0px;height:24.75pt'> <p align="center" style='margin:0in 0in 0pt;text-align:center'> </p> <p align="right" style='margin:0in 0in 0pt;text-align:right'> </p> <p align="right" style='margin:0in 0in 0pt;text-align:right'>6.2892</p></td> <td valign="bottom" width="0%" style='padding-right:0px;padding-left:0px;background:#cceeff;padding-bottom:0px;width:0.22%;padding-top:0px;height:24.75pt'></td> <td valign="bottom" width="0%" style='padding-right:0px;padding-left:0px;background:#cceeff;padding-bottom:0px;width:0.06%;padding-top:0px;height:24.75pt'></td> <td valign="bottom" width="15%" style='padding-right:0px;padding-left:0px;background:#cceeff;padding-bottom:0px;width:15.1%;padding-top:0px;height:24.75pt'> <p align="right" style='margin:0in 20pt 0pt 0in;text-align:right'> 6.3449 </p></td> <td valign="bottom" width="0%" style='padding-right:0px;padding-left:0px;background:#cceeff;padding-bottom:0px;width:0.06%;padding-top:0px;height:24.75pt'></td> <td valign="bottom" width="0%" style='padding-right:0px;padding-left:0px;background:#cceeff;padding-bottom:0px;width:0.08%;padding-top:0px;height:24.75pt'></td> <td valign="bottom" width="17%" style='padding-right:0px;padding-left:0px;background:#cceeff;padding-bottom:0px;width:17.7%;padding-top:0px;height:24.75pt'> <p align="right" style='margin:0in 20pt 0pt 0in;text-align:right'> 6.34824 </p></td></tr> <tr style='height:24.75pt'> <td valign="bottom" width="49%" style='padding-right:0px;padding-left:0px;background:white;padding-bottom:0px;width:49.06%;padding-top:0px;height:24.75pt'> <p style='margin:0in 0in 0pt'><b>Average Period RMB Exchange Rate (RMB/USD$) </b></p></td> <td valign="top" width="17%" style='padding-right:0px;padding-left:0px;background:white;padding-bottom:0px;width:17.7%;padding-top:0px;height:24.75pt'> <p align="right" style='margin:0in 0in 0pt 4.75pt;text-align:right'> </p> <p align="right" style='margin:0in 0in 0pt 4.75pt;text-align:right'> </p> <p align="right" style='margin:0in 0in 0pt 4.75pt;text-align:right'>6.3219</p></td> <td valign="bottom" width="0%" style='padding-right:0px;padding-left:0px;background:white;padding-bottom:0px;width:0.22%;padding-top:0px;height:24.75pt'></td> <td valign="bottom" width="0%" style='padding-right:0px;padding-left:0px;background:white;padding-bottom:0px;width:0.06%;padding-top:0px;height:24.75pt'></td> <td valign="bottom" width="15%" style='padding-right:0px;padding-left:0px;background:white;padding-bottom:0px;width:15.1%;padding-top:0px;height:24.75pt'> <p align="right" style='margin:0in 20pt 0pt 0in;text-align:right'> 6.3277 </p></td> <td valign="bottom" width="0%" style='padding-right:0px;padding-left:0px;background:white;padding-bottom:0px;width:0.06%;padding-top:0px;height:24.75pt'></td> <td valign="bottom" width="0%" style='padding-right:0px;padding-left:0px;background:white;padding-bottom:0px;width:0.08%;padding-top:0px;height:24.75pt'></td> <td valign="bottom" width="17%" style='padding-right:0px;padding-left:0px;background:white;padding-bottom:0px;width:17.7%;padding-top:0px;height:24.75pt'> <p align="right" style='margin:0in 20pt 0pt 0in;text-align:right'> 6.4063 </p></td></tr></table></div> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'><b><i><u>Statutory Reserve </u></i></b></p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>Subsidiaries incorporated in China are required to make appropriations to reserve funds, based on after-tax net income determined in accordance with generally accepted accounting principles of the People’s Republic of China (“PRC GAAP”). Effective January 1, 2006, the Company is only required to contribute to one statutory reserve fund at 10% of net income after tax per annum, and any contributions are not to exceed 50% of the respective companies’ registered capital. </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>As of November 30, 2012, the Company has appropriated USD $31,263 to the statutory reserve. </p> <p style='margin:0in 0in 0pt'> </p> <p style='margin:0in 0in 0pt'><b><i><u>New accounting pronouncements</u></i></b></p> <p style='margin:0in 0in 0pt'> </p> <p style='text-justify:inter-ideograph;margin:0in 0in 0pt;text-align:justify'>The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b>NOTE 3 – ACCOUNTS RECEIVABLE, NET </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b> </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The Company provides an allowance for doubtful accounts related to its receivables. The receivables and allowance balances at November 30, 2012 and May 31, 2012 are as follows: </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="88%" style='width:88.92%'> <tr style='height:4.25pt'> <td width="58%" valign="bottom" style='width:58.82%;padding:0in 0in 1.5pt 0in;height:4.25pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.72%;padding:0in 0in 1.5pt 0in;height:4.25pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="39%" colspan="6" valign="bottom" style='width:39.74%;border:none;border-bottom:solid black 1.5pt;padding:0;height:4.25pt'></td> <td width="0%" valign="bottom" style='width:.72%;padding:0in 0in 1.5pt 0in;height:4.25pt'></td> </tr> <tr style='height:12.8pt'> <td width="58%" valign="bottom" style='width:58.82%;padding:0in 0in 1.5pt 0in;height:12.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.72%;padding:0in 0in 1.5pt 0in;height:12.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" colspan="2" valign="bottom" style='width:19.22%;border:none;border-bottom:solid black 1.5pt;padding:0;height:12.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012</p> </td> <td width="0%" valign="bottom" style='width:.72%;padding:0in 0in 1.5pt 0in;height:12.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.72%;padding:0in 0in 1.5pt 0in;height:12.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" colspan="2" valign="bottom" style='width:19.08%;border:none;border-bottom:solid black 1.5pt;padding:0;height:12.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>May 31, 2012</p> </td> <td width="0%" valign="bottom" style='width:.72%;padding:0in 0in 1.5pt 0in;height:12.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr style='height:12.0pt'> <td width="58%" valign="bottom" style='width:58.82%;background:#CCEEFF;padding:0;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts Receivable </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:#CCEEFF;padding:0;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="17%" valign="bottom" style='width:17.3%;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>9,158,705 </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$ </p> </td> <td width="17%" valign="bottom" style='width:17.16%;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,951,883 </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr style='height:12.0pt'> <td width="58%" valign="bottom" style='width:58.82%;background:white;padding:0in 0in 1.5pt 0in;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Less: Allowance for Doubtful Accounts </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:white;padding:0in 0in 1.5pt 0in;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17%" valign="bottom" style='width:17.3%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (263,821) </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:white;padding:0in 0in 1.5pt 0in;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:white;padding:0in 0in 1.5pt 0in;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="17%" valign="bottom" style='width:17.16%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (261,893) </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:white;padding:0in 0in 1.5pt 0in;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr style='height:12.0pt'> <td width="58%" valign="bottom" style='width:58.82%;background:#CCEEFF;padding:0in 0in 3.0pt 0in;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts Receivable, Net </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0in 0in 3.0pt 0in;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="17%" valign="bottom" style='width:17.3%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>8,894,884</p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0in 0in 3.0pt 0in;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0in 0in 3.0pt 0in;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$ </p> </td> <td width="17%" valign="bottom" style='width:17.16%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,689,990 </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0in 0in 3.0pt 0in;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 4 – PREPAID ACCOUNT </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="88%" style='width:88.08%'> <tr align="left"> <td width="52%" valign="bottom" style='width:52.7%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The prepaid account consisted of the follows: </p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="46%" colspan="6" valign="bottom" style='width:46.1%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr style='height:.2in'> <td width="52%" valign="bottom" style='width:52.7%;padding:0in 0in 1.5pt 0in;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21%" colspan="2" valign="bottom" style='width:21.78%;border:none;border-bottom:solid black 1.5pt;padding:0;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012</p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;padding:0in 0in 1.5pt 0in;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="22%" colspan="2" valign="bottom" style='width:22.84%;border:none;border-bottom:solid black 1.5pt;padding:0;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:-3.0pt;text-align:center;text-indent:3.0pt'>May 31, 2012 </p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="52%" valign="bottom" style='width:52.7%;padding:0in 0in 1.5pt 0in'></td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'></td> <td width="21%" colspan="2" valign="bottom" style='width:21.78%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'></td> <td width="0%" valign="bottom" style='width:.88%;padding:0in 0in 1.5pt 0in'></td> <td width="22%" colspan="2" valign="bottom" style='width:22.84%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'></td> </tr> <tr align="left"> <td width="52%" valign="bottom" style='width:52.7%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prepayment for purchase of raw materials </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.14%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="19%" valign="bottom" style='width:19.62%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,117,454</p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.7%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="21%" valign="bottom" style='width:21.14%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>2,319,805 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="52%" valign="bottom" style='width:52.7%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prepayment for advertisement, exhibitions, utilities, consulting fees, etc. </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.14%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.62%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>63,838 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.7%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21%" valign="bottom" style='width:21.14%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>69,742 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="52%" valign="bottom" style='width:52.7%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total prepaid account </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.14%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="19%" valign="bottom" style='width:19.62%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,181,292</p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.7%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="21%" valign="bottom" style='width:21.14%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>2,389,547 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p>
<!--egx--> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 5 – OTHER RECEIVABLE </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The other receivable consisted of the follows:                                                      </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="93%" style='width:93.54%'> <tr align="left"> <td width="48%" valign="bottom" style='width:48.98%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.02%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="49%" colspan="6" valign="bottom" style='width:49.3%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.68%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="48%" valign="bottom" style='width:48.98%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.02%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="28%" colspan="2" valign="bottom" style='width:28.46%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012 </p> </td> <td width="0%" valign="bottom" style='width:.7%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.7%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" colspan="2" valign="bottom" style='width:19.46%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> May 31, 2012 </p> </td> <td width="0%" valign="bottom" style='width:.68%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="48%" valign="bottom" style='width:48.98%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Other Receivable </p> </td> <td width="1%" valign="bottom" style='width:1.02%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="28%" colspan="2" valign="bottom" style='width:28.46%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.7%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.7%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" colspan="2" valign="bottom" style='width:19.46%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.68%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="48%" valign="bottom" style='width:48.98%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Receivables from Entities </p> </td> <td width="1%" valign="bottom" style='width:1.02%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="26%" valign="bottom" style='width:26.4%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,661,245 </p> </td> <td width="0%" valign="bottom" style='width:.7%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.7%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.7%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="17%" valign="bottom" style='width:17.76%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>431,503 </p> </td> <td width="0%" valign="bottom" style='width:.68%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="48%" valign="bottom" style='width:48.98%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:6.15pt'>Receivables from Individuals </p> </td> <td width="1%" valign="bottom" style='width:1.02%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="26%" valign="bottom" style='width:26.4%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>234,755</p> </td> <td width="0%" valign="bottom" style='width:.7%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.7%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.7%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17%" valign="bottom" style='width:17.76%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>647,662 </p> </td> <td width="0%" valign="bottom" style='width:.68%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="48%" valign="bottom" style='width:48.98%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total </p> </td> <td width="1%" valign="bottom" style='width:1.02%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="26%" valign="bottom" style='width:26.4%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,895,999</p> </td> <td width="0%" valign="bottom" style='width:.7%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.7%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.7%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="17%" valign="bottom" style='width:17.76%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,079,165 </p> </td> <td width="0%" valign="bottom" style='width:.68%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 6 – INVENTORY </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Inventory consists of finished goods, work-in-process, and raw materials. No allowance for inventory was reserved as of November 30, 2012 and May 31, 2012. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The components of inventories as of November 30, 2012 and May 31, 2012 were as follows: </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="42%" colspan="6" valign="bottom" style='width:42.9%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21%" colspan="2" valign="bottom" style='width:21.3%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012 </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" colspan="2" valign="bottom" style='width:20.26%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>    May 31, 2012 </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;padding:0in 0in 1.5pt 0in'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> <td width="21%" colspan="2" valign="bottom" style='width:21.3%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> <td width="20%" colspan="2" valign="bottom" style='width:20.26%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Raw materials </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.36%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="18%" valign="bottom" style='width:18.96%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>164,439</p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="18%" valign="bottom" style='width:18.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>410,729 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Packaging </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.36%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18%" valign="bottom" style='width:18.96%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>60,337</p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.26%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18%" valign="bottom" style='width:18.0%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>59,896 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Work-in-progress </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.36%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18%" valign="bottom" style='width:18.96%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>694,546 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18%" valign="bottom" style='width:18.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>720,229 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Finished goods </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.36%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18%" valign="bottom" style='width:18.96%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>254,323</p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.26%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18%" valign="bottom" style='width:18.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>794,466 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Total Inventories </b></p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.36%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="18%" valign="bottom" style='width:18.96%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>1,173,645</b></p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.26%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="18%" valign="bottom" style='width:18.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>1,985,391 </b></p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 7 - PLANT, PROPERTY AND EQUIPMENT, NET </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The components of plant, property and equipment as of November 30, 2012 and May 31, 2012 were as follows: </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="42%" colspan="6" valign="bottom" style='width:42.9%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21%" colspan="2" valign="bottom" style='width:21.3%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012</p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" colspan="2" valign="bottom" style='width:20.26%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>    May 31, 2012 </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;padding:0in 0in 1.5pt 0in'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> <td width="21%" colspan="2" valign="bottom" style='width:21.3%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> <td width="20%" colspan="2" valign="bottom" style='width:20.26%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Machinery </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="19%" valign="bottom" style='width:19.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,258,249 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="2%" valign="bottom" style='width:2.16%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$ </p> </td> <td width="18%" valign="bottom" style='width:18.1%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,106,702 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Electronic Equipment </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>69,938 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="2%" valign="bottom" style='width:2.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="18%" valign="bottom" style='width:18.1%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>182,934 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Transportation Equipment </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>256,905 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="2%" valign="bottom" style='width:2.16%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="18%" valign="bottom" style='width:18.1%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>283,872 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Subtotal </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,585,092 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="2%" valign="bottom" style='width:2.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="18%" valign="bottom" style='width:18.1%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,573,507 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Less: Accumulated Depreciation </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(1,089,783) </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="2%" valign="bottom" style='width:2.16%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="18%" valign="bottom" style='width:18.1%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(1,024,186) </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> <b>Total plant, property and equipment, net </b></p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="19%" valign="bottom" style='width:19.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>495,309 </b></p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 3.0pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 3.0pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="2%" valign="bottom" style='width:2.16%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>$ </b></p> </td> <td width="18%" valign="bottom" style='width:18.1%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>549,322 </b></p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The depreciation expense for the three months ended November 30, 2012 and 2011 was $25,540 and $29,425, respectively. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The depreciation expense for the six months ended November 30, 2012 and 2011 was $54,013 and $67,245, respectively</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 8 - RELATED PARTY TRANSACTIONS AND BALANCES </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b> </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>An individual or entity is considered to be a related party if the person or the entity has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. An individual or entity is also considered to be related if the person or the entity is subject to common control or common significant influence. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The related parties of the company are comprised as follows: </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Name of entity or individual </b></p> </td> <td width="2%" valign="top" style='width:2.08%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="59%" valign="top" style='width:59.46%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Relationship with the Company </b></p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Hengchuan Plastics Co, Ltd </p> </td> <td width="2%" valign="top" style='width:2.08%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Entity controlled by Mr. Pan Shudong and His Wife </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Shiji Jinyue Packaging Co.,Ltd </p> </td> <td width="2%" valign="top" style='width:2.08%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Entity controlled by Mr. Pan Shudong’s Sister </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Jinyue Electronic Co.,Ltd </p> </td> <td width="2%" valign="top" style='width:2.08%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Entity controlled by Mr. Pan Shudong’s Sister </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Leyuan International Trade Co.,Ltd </p> </td> <td width="2%" valign="top" style='width:2.08%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Entity controlled by Mr. Pan Shudong’s Sister </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Mr. Pan Shudong </p> </td> <td width="2%" valign="top" style='width:2.08%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Controlling person of China Metal Holding, Inc. </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Ms. Li Xingmei </p> </td> <td width="2%" valign="top" style='width:2.08%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Mr. Pan Shudong’s Wife and Director of Changzhou Huayue Electronic Co.,Ltd </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Pan Yile </p> </td> <td width="2%" valign="top" style='width:2.08%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> Mr. Pan Shudong’s Daughter and Employee of Changzhou Huayue Electronic Co.,Ltd </p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-indent:27.0pt'><b><i> (i) Due from Related Party: </i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Due from Related Parties, at November 30, 2012 and May 31, 2012, consisted of the following balances: </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="15%" valign="bottom" style='width:15.88%;border-top:solid windowtext 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Transaction </b></p> </td> <td width="0%" valign="bottom" style='width:.52%;padding:0in 0in 1.5pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td width="21%" colspan="2" valign="bottom" style='width:21.18%;border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> November 30, 2012 </b></p> </td> <td width="0%" valign="bottom" style='width:.52%;border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="0%" valign="bottom" style='width:.52%;border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td width="20%" colspan="2" valign="bottom" style='width:20.58%;border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>May 31, 2012 </b></p> </td> <td width="0%" valign="bottom" style='width:.52%;border:none;border-top:solid black 1.0pt;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Hengchuan Plastics Co, Ltd </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prepayment & Other Receivable </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>409,740 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>375,334 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Jinyue Electronics Co., Ltd </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts receivable </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>795 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>49,278 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Shiji Jinyue Packaging Co.,Ltd </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts receivable </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>127,342 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>371,873 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Shiji Jinyue Packaging Co.,Ltd </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Advance to Suppliers </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>- </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>61,427 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Pan Yile </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Other Receivable </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>- </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>312,630 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Mr. Pan Shudong </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Due from Mr. Pan </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>357,720</p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>187,156 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Ms. Xinmei Li </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Due from Mr. Pan </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>814 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>32,376 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Total due from related parties </b></p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0in 0in 3.0pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td width="1%" valign="bottom" style='width:1.06%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="20%" valign="bottom" style='width:20.12%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>896,411</b></p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0in 0in 3.0pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td width="1%" valign="bottom" style='width:1.06%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="19%" valign="bottom" style='width:19.52%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'><b>1,390,074 </b></p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-indent:.5in'><b><i>(ii) Due to Related Parties </i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Due to Related Parties at November 30, 2012 and May 31, 2012 consisted of the follows: </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="89%" style='width:89.54%;margin-left:-20.7pt'> <tr align="left"> <td width="42%" valign="bottom" style='width:42.22%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" valign="bottom" style='width:14.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="37%" colspan="6" valign="bottom" style='width:37.34%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="5%" valign="bottom" style='width:5.24%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="42%" valign="bottom" style='width:42.22%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" valign="bottom" style='width:14.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21%" colspan="2" valign="bottom" style='width:21.34%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>November 30, 2012</b></p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" colspan="2" valign="bottom" style='width:14.8%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>May 31, 2012</b></p> </td> <td width="5%" valign="bottom" style='width:5.24%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="42%" valign="bottom" style='width:42.22%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Leyuan International Trade Co.,Ltd </p> </td> <td width="14%" valign="bottom" style='width:14.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts payable </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="17%" valign="bottom" style='width:17.82%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>- </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.78%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="13%" valign="bottom" style='width:13.02%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>114,290 </p> </td> <td width="5%" valign="bottom" style='width:5.24%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="42%" valign="bottom" style='width:42.22%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Pan Yile</p> </td> <td width="14%" valign="bottom" style='width:14.6%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Other payable</p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17%" valign="bottom" style='width:17.82%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>69,492</p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.78%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="13%" valign="bottom" style='width:13.02%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>-</p> </td> <td width="5%" valign="bottom" style='width:5.24%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="42%" valign="bottom" style='width:42.22%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Hengchuan Plastics Co, Ltd </p> </td> <td width="14%" valign="bottom" style='width:14.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts payable </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17%" valign="bottom" style='width:17.82%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>12,720 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.78%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="13%" valign="bottom" style='width:13.02%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>80,222 </p> </td> <td width="5%" valign="bottom" style='width:5.24%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="42%" valign="bottom" style='width:42.22%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Total due to related parties </b></p> </td> <td width="14%" valign="bottom" style='width:14.6%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> $ </b></p> </td> <td width="17%" valign="bottom" style='width:17.82%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>82,212 </b></p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.78%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> $ </b></p> </td> <td width="13%" valign="bottom" style='width:13.02%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>194,312 </b></p> </td> <td width="5%" valign="bottom" style='width:5.24%;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div>
<!--egx--> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 10 – SHORT-TERM DEBT </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td valign="bottom" style='padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company’s short term debt consisted of the follows:          </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='border:none;border-top:solid black 1.0pt;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td colspan="2" valign="bottom" style='border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012 </p> </td> <td valign="bottom" style='border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td colspan="2" valign="bottom" style='border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>May 31, 2012 </p> </td> <td valign="bottom" style='border:none;border-top:solid black 1.0pt;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>USD </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>USD </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td width="69%" valign="bottom" style='width:69.38%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Loan from China Communication Bank ($0.79 million is due on 10/17/2012 with 8.528% annual interest rate , $0.95 million is due on 12/22/2012 with 8.528% annual interest rate, $0.63 million is due on 12/12/2012 with 8.528% annual interest rate) </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.56%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="13%" valign="bottom" style='width:13.82%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>-<font style='background:yellow'> </font></p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="11%" valign="bottom" style='width:11.62%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,156,815 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="69%" valign="bottom" style='width:69.38%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Loan from China Industrial and Commercial Bank ($0.48 million is due on 9/10/2013 with 5.810% annual interest rate and $0.47 million is due on 6/10/2013 with 6.560% annual interest rate) </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.56%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="13%" valign="bottom" style='width:13.82%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>954,016</p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="11%" valign="bottom" style='width:11.62%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>947,044 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="69%" valign="bottom" style='width:69.38%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Loan from Chinese Bank (6.893% annual interest rate, due on 8/8/2013) </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.56%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="13%" valign="bottom" style='width:13.82%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,113,019 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="11%" valign="bottom" style='width:11.62%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,420,567 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="69%" valign="bottom" style='width:69.38%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Loan from Changzhou Wujinyintong Agriculture Credit Union (6% annual interest rate, due on 3/18/2013) </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.56%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="13%" valign="bottom" style='width:13.82%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>477,008 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="11%" valign="bottom" style='width:11.62%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>473,522 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="69%" valign="bottom" style='width:69.38%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Loan from Changzhou Wujinyinfeng Agriculture Credit Union (6% annual interest rate, due on 3/18/2013) </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.56%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="13%" valign="bottom" style='width:13.82%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>795,014 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="11%" valign="bottom" style='width:11.62%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>789,204 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="69%" valign="bottom" style='width:69.38%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total short term debt </p> </td> <td style='background:white;padding:0'></td> <td style='background:white;padding:0'></td> <td style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>       3,339,058</b></p> </td> <td style='background:white;padding:0'></td> <td style='background:white;padding:0'></td> <td style='background:white;padding:0'></td> <td style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>    6,787,152</b></p> </td> <td style='background:white;padding:0'></td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 11 – NOTES PAYABLE </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="58%" valign="bottom" style='width:58.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="22%" colspan="2" valign="bottom" style='width:22.12%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012</p> </td> <td width="0%" valign="bottom" style='width:.96%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.96%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" colspan="2" valign="bottom" style='width:14.84%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>May 31, 2012</p> </td> <td width="0%" valign="bottom" style='width:.54%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Notes payable to Huaxian Bank </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="20%" valign="bottom" style='width:20.2%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,590,027 </p> </td> <td width="0%" valign="bottom" style='width:.96%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.96%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="12%" valign="bottom" style='width:12.92%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,578,407 </p> </td> <td width="0%" valign="bottom" style='width:.54%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.66%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Total notes payable </b></p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> $ </b></p> </td> <td width="20%" valign="bottom" style='width:20.2%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>1,590,027 </b></p> </td> <td width="0%" valign="bottom" style='width:.96%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.96%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> $ </b></p> </td> <td width="12%" valign="bottom" style='width:12.92%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>1,578,407 </b></p> </td> <td width="0%" valign="bottom" style='width:.54%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>All notes payable were due within one year and bear 6% annual interest rate on the maturity date.                   </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 12 - TAX PAYABLE </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Tax payable at November 30, 2012 and May 31, 2012 are as follows:                                      </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="51%" valign="bottom" style='width:51.92%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.96%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="46%" colspan="6" valign="bottom" style='width:46.52%;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.92%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.96%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="22%" colspan="2" valign="bottom" style='width:22.34%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012</p> </td> <td width="5%" valign="bottom" style='width:5.98%;padding:0in 0in 1.5pt 0in'></td> <td width="2%" valign="bottom" style='width:2.68%;padding:0in 0in 1.5pt 0in'></td> <td width="15%" colspan="2" valign="bottom" style='width:15.52%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>May 31, 2012</p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'></td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.92%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Corporate Income Tax </p> </td> <td width="0%" valign="bottom" style='width:.96%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="20%" valign="bottom" style='width:20.42%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>536,257 </p> </td> <td width="5%" valign="bottom" style='width:5.98%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.68%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="14%" valign="bottom" style='width:14.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>106,366 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.92%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Value-Added Tax </p> </td> <td width="0%" valign="bottom" style='width:.96%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.42%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>142,340 </p> </td> <td width="5%" valign="bottom" style='width:5.98%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.68%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" valign="bottom" style='width:14.0%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>134,962 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.92%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Other Tax & Fees </p> </td> <td width="0%" valign="bottom" style='width:.96%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.42%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>20,981 </p> </td> <td width="5%" valign="bottom" style='width:5.98%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.68%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.52%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" valign="bottom" style='width:14.0%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>370 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.92%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Total Tax Payable </b></p> </td> <td width="0%" valign="bottom" style='width:.96%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="20%" valign="bottom" style='width:20.42%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>699,578 </b></p> </td> <td width="5%" valign="bottom" style='width:5.98%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.68%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.52%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="14%" valign="bottom" style='width:14.0%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>241,698 </b></p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 13 - OTHER PAYABLE </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company’s other payable, at November 30, 2012 and May 31, 2012, consisted of the follows:               </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="58%" valign="bottom" style='width:58.36%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.64%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="39%" colspan="6" valign="bottom" style='width:39.68%;padding:0'></td> <td width="1%" valign="bottom" style='width:1.3%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.36%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Type of Other payable: </b></p> </td> <td width="0%" valign="bottom" style='width:.64%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" colspan="2" valign="bottom" style='width:20.46%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012</p> </td> <td width="4%" valign="bottom" style='width:4.26%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.64%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" colspan="2" valign="bottom" style='width:14.32%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>May 31, 2012</p> </td> <td width="1%" valign="bottom" style='width:1.3%;padding:0in 0in 1.5pt 0in'></td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.36%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Maintenance, utilities, and insurance </p> </td> <td width="0%" valign="bottom" style='width:.64%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.38%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="17%" valign="bottom" style='width:17.08%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>38,315 </p> </td> <td width="4%" valign="bottom" style='width:4.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.64%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="11%" valign="bottom" style='width:11.72%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>518,795 </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.36%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Payable to service fees </p> </td> <td width="0%" valign="bottom" style='width:.64%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.38%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17%" valign="bottom" style='width:17.08%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>64,139 </p> </td> <td width="4%" valign="bottom" style='width:4.26%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.64%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.6%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="11%" valign="bottom" style='width:11.72%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>87,723 </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.36%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Others </p> </td> <td width="0%" valign="bottom" style='width:.64%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.38%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17%" valign="bottom" style='width:17.08%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>195,239 </p> </td> <td width="4%" valign="bottom" style='width:4.26%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.64%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.6%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="11%" valign="bottom" style='width:11.72%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>824 </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.36%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Total other payable </b></p> </td> <td width="0%" valign="bottom" style='width:.64%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.38%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="17%" valign="bottom" style='width:17.08%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>297,693</b></p> </td> <td width="4%" valign="bottom" style='width:4.26%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="0%" valign="bottom" style='width:.64%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="2%" valign="bottom" style='width:2.6%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> $ </b></p> </td> <td width="11%" valign="bottom" style='width:11.72%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>607,341 </b></p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 14 - INCOME TAXES </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>For the six months ended November 30, 2012 and 2011, Changzhou Huayue Electronics Co., Ltd recorded income tax provisions of $349,272 and $11,928 respectively. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-indent:.5in'><b><i>(i) The components of income (loss) before income tax expense are as follows: </i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0"> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td colspan="6" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>For the six months ended November 30, </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2012</b></p> </td> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2011</b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>P.R.China </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>2,378,565 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>47,713 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55" style='border:none'></td> <td width="3" style='border:none'></td> <td width="6" style='border:none'></td> <td width="116" style='border:none'></td> <td width="6" style='border:none'></td> <td width="6" style='border:none'></td> <td width="6" style='border:none'></td> <td width="80" style='border:none'></td> <td width="3" style='border:none'></td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:.5in'><b><i>(ii) The components of the income tax benefit (expense) are as follows: </i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0"> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td colspan="6" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>For the six months ended November 30, </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>      2012 </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2011</b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Current </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (388,845 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>) </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (11,928 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>) </p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Deferred: </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> 39,573 </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> - </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total Income tax benefit (expense) </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (349,272 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>) </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (11,928 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>) </p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b><i>(iii) The following table summarizes deferred taxes resulting from differences between financial accounting basis and tax basis of assets and liabilities: </i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0"> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td colspan="6" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>For the six months ended November 30,</b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2012</b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2011</b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Current assets and liabilities </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Accounts receivable allowances </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>39,573 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>- </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Deferred tax assets, net, current </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>39,573 </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>- </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>Changzhou Huayue Electronics Co., Ltd is subject to the Enterprise Income Tax (“EIT”) at a statutory rate of 25%. However, according to P.R. China tax law, the effective tax rate for the bad debt expense deduction is only 15%.  The Company recognized $39,573 current deferred tax assets at enacted 15% tax deduction rate for the temporary differences between the financial reporting bases and the tax bases of its allowance for accounts receivable. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The Company recognizes 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 are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate resolution. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>NOTE 15 – COMMON STOCK AND ADDITIONAL PAID IN CAPITAL </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On July 26, 2012, the Company received $300,065 cash payment from its shareholders. The cash receipt was recorded as addition to the paid in capital. On July 25, 2012, Ms. Li Xinmei contributed $2,698,230 to the Company. The contribution was recognized as additional paid in capital. Ms. Li is a member of the Board of Directors, spouse of the CEO, and a principal shareholder of the Company.  Both transactions did not increase the outstanding shares of the common stock. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>On November 21, 2012, the Company’s Board of Directors approved and authorized the sale of 1,260,000 shares at $2.50 per share to Ms. Li Xinmei.  The Company received total proceeds of $3,150,000 from Ms. Li Xinmei in the quarter ended November 30, 2012. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Basis of presentation</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The financial statements reflect the financial position of the Company and its subsidiary, Changzhou Huayue Electronic Co., Ltd., as of November 30, 2012 and May 31, 2012 and the results of operations and cash flows of the Company and its subsidiary, Changzhou Huayue Electronic Co., Ltd., for the three months and six months ended November 30, 2012 and 2011. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Principles of consolidation</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The consolidated financial statements include the financial statements of China Metal Holding, Inc. and Changzhou Huayue Electronics Co., Ltd. All inter-company transactions and balances are eliminated in consolidation. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Use of estimates</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include: the allowance for bad debt, the valuation of inventory, and estimated useful lives and impairment of property and equipment. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Cash and cash equivalents</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>For purposes of the statement of cash flow, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Accounts Receivable and Allowance for Bad Debt</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>Accounts receivable are stated at net realizable value. An allowance for doubtful accounts is established based on the management’s assessment of the recoverability of accounts and other receivables. A considerable amount of judgment is required in assessing the realization of these receivables, including the current credit worthiness of each customer and the related aging analysis. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b><i><u>Inventory</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>Inventory is primarily composed of raw materials and packing materials for manufacturing, work in process, and finished goods. Inventories are valued at the lower of cost or market with cost determined on a weighted average basis. Management compares the cost of inventory with the market value and an allowance is made for writing down the inventory to its market value, if lower than cost. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Machinery and equipment</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>Machinery and equipment are stated at cost. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and locations for its intended use. Depreciation is calculated using the straight-line method over the following useful lives: </p> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="42%" style='width:42.7%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> Machinery, equipment, and automobiles </p> </td> <td width="57%" style='width:57.3%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> 7-15 years </p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>Expenditures for maintenance and repairs are charged to expense as incurred. Additions, renewals and betterments are capitalized. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Revenue recognition</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The Company’s revenue recognition policies are in compliance with Staff Accounting Bulletin (“SAB”) 104, included in the Codification as ASC 605, <i>Revenue Recognition. </i>Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are recorded as customer deposits. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Customer deposit</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>Revenue from the sale of goods or services is recognized at the time that goods are delivered or services are rendered. Receipts in advance for goods to be delivered or services to be rendered in a subsequent period are carried forward as customer deposit. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Prepaid account</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>Prepaid account represents the payments made and recorded in advance for goods and services received. The Company makes advances for raw materials purchased from certain domestic vendors. In order to maintain a long-term relationship with the vendors, the Company frequently needs to make advances from one and one-half months to three months ahead. The prepaid account was $3,181,292 as of November 30, 2012 and $2,389,547 as of May 31, 2012. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Impairment of long-lived assets</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. An impairment loss, measured based on the fair value of the asset, is recognized if expected future undiscounted cash flows are less than the carrying amount of the assets. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Income taxes</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The Company accounts for income tax under the asset and liability method as stipulated by Accounting Standards Codification (“ASC”) 740, formerly Statement of Financial Accounting Standards (”SFAS”) No. 109, “<i>Accounting for Income Taxes”</i>, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns. Deferred income taxes will be recognized if significant temporary differences between tax and financial statements occur. Valuation allowances are established against net deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. The deferred tax asset at November 30, 2012 and May 31, 2012 were $39,573 and $39,226, respectively. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Value-added tax</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>Sales revenue represents the invoiced value of goods, net of a Value-Added Tax (“VAT”). All of the Company’s products that are sold in the PRC are subject to a Chinese value-added tax at a rate of 17% of the gross sales price. This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing their finished product. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The Company recorded $142,340 and $134,962 VAT payable net of payments in the financial statements as of November 30, 2012 and May 31, 2012, respectively. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Advertising costs</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>Advertising costs for newspaper and television are expensed as incurred. The Company incurred no advertising costs for the three months ended November 30, 2012 and incurred $6,610 advertising costs for the three months ended November 30, 2011. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The Company incurred advertising costs of $184 and $8,509 for the six months ended November 30, 2012 and 2011, respectively.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Mailing and handling costs</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The Company accounts for mailing and handling fees in accordance with the <i>FASB ASC </i>605-45 (Emerging<i> Issues Task Force </i>(EITF<i>)</i> <i>Issue No.</i> <i>00-10,</i> <i>Accounting for Shipping and Handling Fees and Costs)</i>. T<font style='background:white'>he Company includes shipping and handling fees billed to customers in net revenues. Amounts incurred by the Company for freight are included in cost of goods sold. </font>For the three months ended November 30, 2012 and 2011, the Company incurred $1,127 and $5,663 mailing and handling costs, respectively. For the six months ended November 30, 2012 and 2011, the Company incurred $8,251 and $6,494 mailing and handling costs, respectively.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Risks and uncertainties</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in the North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Fair value of financial instruments </u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due to their short maturities. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>As of November 30, 2012, the Company did not identify any financial instruments that are required to be presented on the balance sheet at fair value other than those whose carrying amounts approximate fair value due to their short maturities. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Foreign currency translation </u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The accounts of the Company’s Chinese subsidiary are maintained in the RMB and the accounts of the U.S. parent company are maintained in the USD. The accounts of the Chinese subsidiary were translated into USD in accordance with Accounting Standards Codification (“ASC”) Topic 830 “Foreign Currency Matters,” with the RMB as the functional currency for the Chinese subsidiary. According to Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at historical rates and statement of income items are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with ASC Topic 220, “Comprehensive Income.” Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the statements of income. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i><u>Statutory Reserve </u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>Subsidiaries incorporated in China are required to make appropriations to reserve funds, based on after-tax net income determined in accordance with generally accepted accounting principles of the People’s Republic of China (“PRC GAAP”). Effective January 1, 2006, the Company is only required to contribute to one statutory reserve fund at 10% of net income after tax per annum, and any contributions are not to exceed 50% of the respective companies’ registered capital. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>As of November 30, 2012, the Company has appropriated USD $31,263 to the statutory reserve. </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b><i><u>New accounting pronouncements</u></i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr style='height:24.75pt'> <td width="49%" valign="bottom" style='width:49.06%;padding:0in 0in 1.5pt 0in;height:24.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> </td> <td width="17%" valign="bottom" style='width:17.7%;padding:0;height:24.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:7.3pt;text-align:center'><b>November 30,</b></p> </td> <td width="0%" valign="bottom" style='width:.22%;padding:0in 0in 1.5pt 0in;height:24.75pt'></td> <td width="15%" colspan="2" valign="bottom" style='width:15.18%;padding:0;height:24.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:20.0pt;text-align:center'><b>May 31,</b></p> </td> <td width="0%" valign="bottom" style='width:.06%;padding:0in 0in 1.5pt 0in;height:24.75pt'></td> <td width="17%" colspan="2" valign="bottom" style='width:17.78%;padding:0;height:24.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:20.0pt;text-align:center'><b>November 30,</b></p> </td> </tr> <tr style='height:.2in'> <td width="49%" valign="bottom" style='width:49.06%;padding:0in 0in 1.5pt 0in;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> </p> </td> <td width="17%" valign="bottom" style='width:17.7%;padding:0;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2012</b></p> </td> <td width="0%" valign="bottom" style='width:.22%;padding:0in 0in 1.5pt 0in;height:.2in'></td> <td width="15%" colspan="2" valign="bottom" style='width:15.18%;padding:0;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2012</b></p> </td> <td width="0%" valign="bottom" style='width:.06%;padding:0in 0in 1.5pt 0in;height:.2in'></td> <td width="17%" colspan="2" valign="bottom" style='width:17.78%;padding:0;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2011</b></p> </td> </tr> <tr style='height:24.75pt'> <td width="49%" valign="bottom" style='width:49.06%;background:#CCEEFF;padding:0;height:24.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Period End RMB Exchange Rate (RMB/USD$) </b></p> </td> <td width="17%" valign="top" style='width:17.7%;background:#CCEEFF;padding:0;height:24.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>6.2892</p> </td> <td width="0%" valign="bottom" style='width:.22%;background:#CCEEFF;padding:0;height:24.75pt'></td> <td width="0%" valign="bottom" style='width:.06%;background:#CCEEFF;padding:0;height:24.75pt'></td> <td width="15%" valign="bottom" style='width:15.1%;background:#CCEEFF;padding:0;height:24.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:20.0pt;text-align:right'>    6.3449 </p> </td> <td width="0%" valign="bottom" style='width:.06%;background:#CCEEFF;padding:0;height:24.75pt'></td> <td width="0%" valign="bottom" style='width:.08%;background:#CCEEFF;padding:0;height:24.75pt'></td> <td width="17%" valign="bottom" style='width:17.7%;background:#CCEEFF;padding:0;height:24.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:20.0pt;text-align:right'>   6.34824 </p> </td> </tr> <tr style='height:24.75pt'> <td width="49%" valign="bottom" style='width:49.06%;background:white;padding:0;height:24.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Average Period RMB Exchange Rate (RMB/USD$) </b></p> </td> <td width="17%" valign="top" style='width:17.7%;background:white;padding:0;height:24.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:4.75pt;text-align:right'> </p> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:4.75pt;text-align:right'>6.3219</p> </td> <td width="0%" valign="bottom" style='width:.22%;background:white;padding:0;height:24.75pt'></td> <td width="0%" valign="bottom" style='width:.06%;background:white;padding:0;height:24.75pt'></td> <td width="15%" valign="bottom" style='width:15.1%;background:white;padding:0;height:24.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:20.0pt;text-align:right'>    6.3277 </p> </td> <td width="0%" valign="bottom" style='width:.06%;background:white;padding:0;height:24.75pt'></td> <td width="0%" valign="bottom" style='width:.08%;background:white;padding:0;height:24.75pt'></td> <td width="17%" valign="bottom" style='width:17.7%;background:white;padding:0;height:24.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:20.0pt;text-align:right'>   6.4063 </p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'>The Company provides an allowance for doubtful accounts related to its receivables. The receivables and allowance balances at November 30, 2012 and May 31, 2012 are as follows: </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="88%" style='width:88.92%'> <tr style='height:4.25pt'> <td width="58%" valign="bottom" style='width:58.82%;padding:0in 0in 1.5pt 0in;height:4.25pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.72%;padding:0in 0in 1.5pt 0in;height:4.25pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="39%" colspan="6" valign="bottom" style='width:39.74%;border:none;border-bottom:solid black 1.5pt;padding:0;height:4.25pt'></td> <td width="0%" valign="bottom" style='width:.72%;padding:0in 0in 1.5pt 0in;height:4.25pt'></td> </tr> <tr style='height:12.8pt'> <td width="58%" valign="bottom" style='width:58.82%;padding:0in 0in 1.5pt 0in;height:12.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.72%;padding:0in 0in 1.5pt 0in;height:12.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" colspan="2" valign="bottom" style='width:19.22%;border:none;border-bottom:solid black 1.5pt;padding:0;height:12.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012</p> </td> <td width="0%" valign="bottom" style='width:.72%;padding:0in 0in 1.5pt 0in;height:12.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.72%;padding:0in 0in 1.5pt 0in;height:12.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" colspan="2" valign="bottom" style='width:19.08%;border:none;border-bottom:solid black 1.5pt;padding:0;height:12.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>May 31, 2012</p> </td> <td width="0%" valign="bottom" style='width:.72%;padding:0in 0in 1.5pt 0in;height:12.8pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr style='height:12.0pt'> <td width="58%" valign="bottom" style='width:58.82%;background:#CCEEFF;padding:0;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts Receivable </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:#CCEEFF;padding:0;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="17%" valign="bottom" style='width:17.3%;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>9,158,705 </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$ </p> </td> <td width="17%" valign="bottom" style='width:17.16%;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,951,883 </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr style='height:12.0pt'> <td width="58%" valign="bottom" style='width:58.82%;background:white;padding:0in 0in 1.5pt 0in;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Less: Allowance for Doubtful Accounts </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:white;padding:0in 0in 1.5pt 0in;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17%" valign="bottom" style='width:17.3%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (263,821) </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:white;padding:0in 0in 1.5pt 0in;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:white;padding:0in 0in 1.5pt 0in;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="17%" valign="bottom" style='width:17.16%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (261,893) </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:white;padding:0in 0in 1.5pt 0in;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr style='height:12.0pt'> <td width="58%" valign="bottom" style='width:58.82%;background:#CCEEFF;padding:0in 0in 3.0pt 0in;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts Receivable, Net </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0in 0in 3.0pt 0in;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="17%" valign="bottom" style='width:17.3%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>8,894,884</p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0in 0in 3.0pt 0in;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0in 0in 3.0pt 0in;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$ </p> </td> <td width="17%" valign="bottom" style='width:17.16%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0;height:12.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,689,990 </p> </td> <td width="0%" valign="bottom" style='width:.72%;background:#CCEEFF;padding:0in 0in 3.0pt 0in;height:12.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="88%" style='width:88.08%'> <tr align="left"> <td width="52%" valign="bottom" style='width:52.7%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The prepaid account consisted of the follows: </p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="46%" colspan="6" valign="bottom" style='width:46.1%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr style='height:.2in'> <td width="52%" valign="bottom" style='width:52.7%;padding:0in 0in 1.5pt 0in;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21%" colspan="2" valign="bottom" style='width:21.78%;border:none;border-bottom:solid black 1.5pt;padding:0;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012</p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;padding:0in 0in 1.5pt 0in;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="22%" colspan="2" valign="bottom" style='width:22.84%;border:none;border-bottom:solid black 1.5pt;padding:0;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:-3.0pt;text-align:center;text-indent:3.0pt'>May 31, 2012 </p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="52%" valign="bottom" style='width:52.7%;padding:0in 0in 1.5pt 0in'></td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'></td> <td width="21%" colspan="2" valign="bottom" style='width:21.78%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'></td> <td width="0%" valign="bottom" style='width:.88%;padding:0in 0in 1.5pt 0in'></td> <td width="22%" colspan="2" valign="bottom" style='width:22.84%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'></td> </tr> <tr align="left"> <td width="52%" valign="bottom" style='width:52.7%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prepayment for purchase of raw materials </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.14%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="19%" valign="bottom" style='width:19.62%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,117,454</p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.7%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="21%" valign="bottom" style='width:21.14%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>2,319,805 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="52%" valign="bottom" style='width:52.7%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prepayment for advertisement, exhibitions, utilities, consulting fees, etc. </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.14%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.62%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>63,838 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.7%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21%" valign="bottom" style='width:21.14%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>69,742 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="52%" valign="bottom" style='width:52.7%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total prepaid account </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.14%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="19%" valign="bottom" style='width:19.62%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,181,292</p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.88%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.7%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="21%" valign="bottom" style='width:21.14%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>2,389,547 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The other receivable consisted of the follows:                                                      </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="93%" style='width:93.54%'> <tr align="left"> <td width="48%" valign="bottom" style='width:48.98%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.02%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="49%" colspan="6" valign="bottom" style='width:49.3%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.68%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="48%" valign="bottom" style='width:48.98%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.02%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="28%" colspan="2" valign="bottom" style='width:28.46%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012 </p> </td> <td width="0%" valign="bottom" style='width:.7%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.7%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" colspan="2" valign="bottom" style='width:19.46%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> May 31, 2012 </p> </td> <td width="0%" valign="bottom" style='width:.68%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="48%" valign="bottom" style='width:48.98%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Other Receivable </p> </td> <td width="1%" valign="bottom" style='width:1.02%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="28%" colspan="2" valign="bottom" style='width:28.46%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.7%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.7%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" colspan="2" valign="bottom" style='width:19.46%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.68%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="48%" valign="bottom" style='width:48.98%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Receivables from Entities </p> </td> <td width="1%" valign="bottom" style='width:1.02%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="26%" valign="bottom" style='width:26.4%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,661,245 </p> </td> <td width="0%" valign="bottom" style='width:.7%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.7%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.7%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="17%" valign="bottom" style='width:17.76%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>431,503 </p> </td> <td width="0%" valign="bottom" style='width:.68%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="48%" valign="bottom" style='width:48.98%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:6.15pt'>Receivables from Individuals </p> </td> <td width="1%" valign="bottom" style='width:1.02%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="26%" valign="bottom" style='width:26.4%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>234,755</p> </td> <td width="0%" valign="bottom" style='width:.7%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.7%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.7%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17%" valign="bottom" style='width:17.76%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>647,662 </p> </td> <td width="0%" valign="bottom" style='width:.68%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="48%" valign="bottom" style='width:48.98%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total </p> </td> <td width="1%" valign="bottom" style='width:1.02%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="26%" valign="bottom" style='width:26.4%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,895,999</p> </td> <td width="0%" valign="bottom" style='width:.7%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.7%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.7%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="17%" valign="bottom" style='width:17.76%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,079,165 </p> </td> <td width="0%" valign="bottom" style='width:.68%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The components of inventories as of November 30, 2012 and May 31, 2012 were as follows: </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="42%" colspan="6" valign="bottom" style='width:42.9%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21%" colspan="2" valign="bottom" style='width:21.3%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012 </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" colspan="2" valign="bottom" style='width:20.26%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>    May 31, 2012 </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;padding:0in 0in 1.5pt 0in'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> <td width="21%" colspan="2" valign="bottom" style='width:21.3%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> <td width="20%" colspan="2" valign="bottom" style='width:20.26%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Raw materials </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.36%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="18%" valign="bottom" style='width:18.96%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>164,439</p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="18%" valign="bottom" style='width:18.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>410,729 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Packaging </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.36%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18%" valign="bottom" style='width:18.96%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>60,337</p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.26%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18%" valign="bottom" style='width:18.0%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>59,896 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Work-in-progress </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.36%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18%" valign="bottom" style='width:18.96%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>694,546 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18%" valign="bottom" style='width:18.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>720,229 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Finished goods </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.36%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18%" valign="bottom" style='width:18.96%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>254,323</p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.26%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="18%" valign="bottom" style='width:18.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>794,466 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Total Inventories </b></p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.36%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="18%" valign="bottom" style='width:18.96%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>1,173,645</b></p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.26%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="18%" valign="bottom" style='width:18.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>1,985,391 </b></p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The components of plant, property and equipment as of November 30, 2012 and May 31, 2012 were as follows: </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="42%" colspan="6" valign="bottom" style='width:42.9%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21%" colspan="2" valign="bottom" style='width:21.3%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012</p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" colspan="2" valign="bottom" style='width:20.26%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>    May 31, 2012 </p> </td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;padding:0in 0in 1.5pt 0in'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> <td width="21%" colspan="2" valign="bottom" style='width:21.3%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> <td width="20%" colspan="2" valign="bottom" style='width:20.26%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="0%" valign="bottom" style='width:.66%;padding:0in 0in 1.5pt 0in'></td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Machinery </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="19%" valign="bottom" style='width:19.24%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,258,249 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="2%" valign="bottom" style='width:2.16%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$ </p> </td> <td width="18%" valign="bottom" style='width:18.1%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,106,702 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Electronic Equipment </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>69,938 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="2%" valign="bottom" style='width:2.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="18%" valign="bottom" style='width:18.1%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>182,934 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Transportation Equipment </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>256,905 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="2%" valign="bottom" style='width:2.16%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="18%" valign="bottom" style='width:18.1%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>283,872 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Subtotal </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.24%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,585,092 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="2%" valign="bottom" style='width:2.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="18%" valign="bottom" style='width:18.1%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,573,507 </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Less: Accumulated Depreciation </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.24%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(1,089,783) </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="2%" valign="bottom" style='width:2.16%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="18%" valign="bottom" style='width:18.1%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>(1,024,186) </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55%" valign="bottom" style='width:55.76%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> <b>Total plant, property and equipment, net </b></p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.06%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="19%" valign="bottom" style='width:19.24%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>495,309 </b></p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 3.0pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 3.0pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="2%" valign="bottom" style='width:2.16%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>$ </b></p> </td> <td width="18%" valign="bottom" style='width:18.1%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>549,322 </b></p> </td> <td width="0%" valign="bottom" style='width:.66%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Name of entity or individual </b></p> </td> <td width="2%" valign="top" style='width:2.08%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="59%" valign="top" style='width:59.46%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Relationship with the Company </b></p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Hengchuan Plastics Co, Ltd </p> </td> <td width="2%" valign="top" style='width:2.08%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Entity controlled by Mr. Pan Shudong and His Wife </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Shiji Jinyue Packaging Co.,Ltd </p> </td> <td width="2%" valign="top" style='width:2.08%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Entity controlled by Mr. Pan Shudong’s Sister </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Jinyue Electronic Co.,Ltd </p> </td> <td width="2%" valign="top" style='width:2.08%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Entity controlled by Mr. Pan Shudong’s Sister </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Leyuan International Trade Co.,Ltd </p> </td> <td width="2%" valign="top" style='width:2.08%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Entity controlled by Mr. Pan Shudong’s Sister </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Mr. Pan Shudong </p> </td> <td width="2%" valign="top" style='width:2.08%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Controlling person of China Metal Holding, Inc. </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Ms. Li Xingmei </p> </td> <td width="2%" valign="top" style='width:2.08%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Mr. Pan Shudong’s Wife and Director of Changzhou Huayue Electronic Co.,Ltd </p> </td> </tr> <tr align="left"> <td width="38%" valign="top" style='width:38.48%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Pan Yile </p> </td> <td width="2%" valign="top" style='width:2.08%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="59%" valign="top" style='width:59.46%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'> Mr. Pan Shudong’s Daughter and Employee of Changzhou Huayue Electronic Co.,Ltd </p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="15%" valign="bottom" style='width:15.88%;border-top:solid windowtext 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Transaction </b></p> </td> <td width="0%" valign="bottom" style='width:.52%;padding:0in 0in 1.5pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td width="21%" colspan="2" valign="bottom" style='width:21.18%;border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> November 30, 2012 </b></p> </td> <td width="0%" valign="bottom" style='width:.52%;border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="0%" valign="bottom" style='width:.52%;border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td width="20%" colspan="2" valign="bottom" style='width:20.58%;border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>May 31, 2012 </b></p> </td> <td width="0%" valign="bottom" style='width:.52%;border:none;border-top:solid black 1.0pt;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Hengchuan Plastics Co, Ltd </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prepayment & Other Receivable </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>409,740 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>375,334 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Jinyue Electronics Co., Ltd </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts receivable </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>795 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>49,278 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Shiji Jinyue Packaging Co.,Ltd </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts receivable </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>127,342 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>371,873 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Shiji Jinyue Packaging Co.,Ltd </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Advance to Suppliers </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>- </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>61,427 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Pan Yile </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Other Receivable </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>- </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>312,630 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Mr. Pan Shudong </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Due from Mr. Pan </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>357,720</p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>187,156 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Ms. Xinmei Li </p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Due from Mr. Pan </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.12%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>814 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1%" valign="bottom" style='width:1.06%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="19%" valign="bottom" style='width:19.52%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'>32,376 </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="40%" valign="bottom" style='width:40.26%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Total due from related parties </b></p> </td> <td width="15%" valign="bottom" style='width:15.88%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0in 0in 3.0pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td width="1%" valign="bottom" style='width:1.06%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="20%" valign="bottom" style='width:20.12%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>896,411</b></p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0in 0in 3.0pt 0in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td width="1%" valign="bottom" style='width:1.06%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="19%" valign="bottom" style='width:19.52%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-right:2.0pt;text-align:right'><b>1,390,074 </b></p> </td> <td width="0%" valign="bottom" style='width:.52%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Due to Related Parties at November 30, 2012 and May 31, 2012 consisted of the follows: </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="89%" style='width:89.54%;margin-left:-20.7pt'> <tr align="left"> <td width="42%" valign="bottom" style='width:42.22%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" valign="bottom" style='width:14.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="37%" colspan="6" valign="bottom" style='width:37.34%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="5%" valign="bottom" style='width:5.24%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="42%" valign="bottom" style='width:42.22%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" valign="bottom" style='width:14.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="21%" colspan="2" valign="bottom" style='width:21.34%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>November 30, 2012</b></p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" colspan="2" valign="bottom" style='width:14.8%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>May 31, 2012</b></p> </td> <td width="5%" valign="bottom" style='width:5.24%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="42%" valign="bottom" style='width:42.22%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Leyuan International Trade Co.,Ltd </p> </td> <td width="14%" valign="bottom" style='width:14.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts payable </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="17%" valign="bottom" style='width:17.82%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>- </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.78%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="13%" valign="bottom" style='width:13.02%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>114,290 </p> </td> <td width="5%" valign="bottom" style='width:5.24%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="42%" valign="bottom" style='width:42.22%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Pan Yile</p> </td> <td width="14%" valign="bottom" style='width:14.6%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Other payable</p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17%" valign="bottom" style='width:17.82%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>69,492</p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.78%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="13%" valign="bottom" style='width:13.02%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>-</p> </td> <td width="5%" valign="bottom" style='width:5.24%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="42%" valign="bottom" style='width:42.22%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Changzhou Hengchuan Plastics Co, Ltd </p> </td> <td width="14%" valign="bottom" style='width:14.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accounts payable </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17%" valign="bottom" style='width:17.82%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>12,720 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.78%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="13%" valign="bottom" style='width:13.02%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>80,222 </p> </td> <td width="5%" valign="bottom" style='width:5.24%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="42%" valign="bottom" style='width:42.22%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Total due to related parties </b></p> </td> <td width="14%" valign="bottom" style='width:14.6%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.54%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> $ </b></p> </td> <td width="17%" valign="bottom" style='width:17.82%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>82,212 </b></p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.78%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> $ </b></p> </td> <td width="13%" valign="bottom" style='width:13.02%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>194,312 </b></p> </td> <td width="5%" valign="bottom" style='width:5.24%;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td valign="bottom" style='padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company’s short term debt consisted of the follows:          </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='border:none;border-top:solid black 1.0pt;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td colspan="2" valign="bottom" style='border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012 </p> </td> <td valign="bottom" style='border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td colspan="2" valign="bottom" style='border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt;border-right:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>May 31, 2012 </p> </td> <td valign="bottom" style='border:none;border-top:solid black 1.0pt;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>USD </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>USD </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td width="69%" valign="bottom" style='width:69.38%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Loan from China Communication Bank ($0.79 million is due on 10/17/2012 with 8.528% annual interest rate , $0.95 million is due on 12/22/2012 with 8.528% annual interest rate, $0.63 million is due on 12/12/2012 with 8.528% annual interest rate) </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.56%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="13%" valign="bottom" style='width:13.82%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>-<font style='background:yellow'> </font></p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="11%" valign="bottom" style='width:11.62%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>3,156,815 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="69%" valign="bottom" style='width:69.38%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Loan from China Industrial and Commercial Bank ($0.48 million is due on 9/10/2013 with 5.810% annual interest rate and $0.47 million is due on 6/10/2013 with 6.560% annual interest rate) </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.56%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="13%" valign="bottom" style='width:13.82%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>954,016</p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="11%" valign="bottom" style='width:11.62%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>947,044 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="69%" valign="bottom" style='width:69.38%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Loan from Chinese Bank (6.893% annual interest rate, due on 8/8/2013) </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.56%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="13%" valign="bottom" style='width:13.82%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,113,019 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="11%" valign="bottom" style='width:11.62%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,420,567 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="69%" valign="bottom" style='width:69.38%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Loan from Changzhou Wujinyintong Agriculture Credit Union (6% annual interest rate, due on 3/18/2013) </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.56%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="13%" valign="bottom" style='width:13.82%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>477,008 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="11%" valign="bottom" style='width:11.62%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>473,522 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="69%" valign="bottom" style='width:69.38%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Loan from Changzhou Wujinyinfeng Agriculture Credit Union (6% annual interest rate, due on 3/18/2013) </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.56%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="13%" valign="bottom" style='width:13.82%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>795,014 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="11%" valign="bottom" style='width:11.62%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>789,204 </p> </td> <td width="0%" valign="bottom" style='width:.58%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="69%" valign="bottom" style='width:69.38%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total short term debt </p> </td> <td style='background:white;padding:0'></td> <td style='background:white;padding:0'></td> <td style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>       3,339,058</b></p> </td> <td style='background:white;padding:0'></td> <td style='background:white;padding:0'></td> <td style='background:white;padding:0'></td> <td style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>    6,787,152</b></p> </td> <td style='background:white;padding:0'></td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="58%" valign="bottom" style='width:58.66%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="22%" colspan="2" valign="bottom" style='width:22.12%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012</p> </td> <td width="0%" valign="bottom" style='width:.96%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.96%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" colspan="2" valign="bottom" style='width:14.84%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>May 31, 2012</p> </td> <td width="0%" valign="bottom" style='width:.54%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.66%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Notes payable to Huaxian Bank </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="20%" valign="bottom" style='width:20.2%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,590,027 </p> </td> <td width="0%" valign="bottom" style='width:.96%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.96%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="12%" valign="bottom" style='width:12.92%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>1,578,407 </p> </td> <td width="0%" valign="bottom" style='width:.54%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.66%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Total notes payable </b></p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> $ </b></p> </td> <td width="20%" valign="bottom" style='width:20.2%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>1,590,027 </b></p> </td> <td width="0%" valign="bottom" style='width:.96%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.96%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> $ </b></p> </td> <td width="12%" valign="bottom" style='width:12.92%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>1,578,407 </b></p> </td> <td width="0%" valign="bottom" style='width:.54%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Tax payable at November 30, 2012 and May 31, 2012 are as follows:                                      </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="51%" valign="bottom" style='width:51.92%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.96%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="46%" colspan="6" valign="bottom" style='width:46.52%;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.92%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.96%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="22%" colspan="2" valign="bottom" style='width:22.34%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012</p> </td> <td width="5%" valign="bottom" style='width:5.98%;padding:0in 0in 1.5pt 0in'></td> <td width="2%" valign="bottom" style='width:2.68%;padding:0in 0in 1.5pt 0in'></td> <td width="15%" colspan="2" valign="bottom" style='width:15.52%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>May 31, 2012</p> </td> <td width="0%" valign="bottom" style='width:.6%;padding:0in 0in 1.5pt 0in'></td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.92%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Corporate Income Tax </p> </td> <td width="0%" valign="bottom" style='width:.96%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="20%" valign="bottom" style='width:20.42%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>536,257 </p> </td> <td width="5%" valign="bottom" style='width:5.98%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.68%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>$ </p> </td> <td width="14%" valign="bottom" style='width:14.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>106,366 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.92%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Value-Added Tax </p> </td> <td width="0%" valign="bottom" style='width:.96%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.42%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>142,340 </p> </td> <td width="5%" valign="bottom" style='width:5.98%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.68%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" valign="bottom" style='width:14.0%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>134,962 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.92%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Other Tax & Fees </p> </td> <td width="0%" valign="bottom" style='width:.96%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" valign="bottom" style='width:20.42%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>20,981 </p> </td> <td width="5%" valign="bottom" style='width:5.98%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.68%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.52%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" valign="bottom" style='width:14.0%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>370 </p> </td> <td width="0%" valign="bottom" style='width:.6%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="51%" valign="bottom" style='width:51.92%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Total Tax Payable </b></p> </td> <td width="0%" valign="bottom" style='width:.96%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.92%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="20%" valign="bottom" style='width:20.42%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>699,578 </b></p> </td> <td width="5%" valign="bottom" style='width:5.98%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.68%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="1%" valign="bottom" style='width:1.52%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>$ </b></p> </td> <td width="14%" valign="bottom" style='width:14.0%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>241,698 </b></p> </td> <td width="0%" valign="bottom" style='width:.6%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The Company’s other payable, at November 30, 2012 and May 31, 2012, consisted of the follows:               </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="58%" valign="bottom" style='width:58.36%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.64%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="39%" colspan="6" valign="bottom" style='width:39.68%;padding:0'></td> <td width="1%" valign="bottom" style='width:1.3%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.36%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Type of Other payable: </b></p> </td> <td width="0%" valign="bottom" style='width:.64%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="20%" colspan="2" valign="bottom" style='width:20.46%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>November 30, 2012</p> </td> <td width="4%" valign="bottom" style='width:4.26%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.64%;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="14%" colspan="2" valign="bottom" style='width:14.32%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>May 31, 2012</p> </td> <td width="1%" valign="bottom" style='width:1.3%;padding:0in 0in 1.5pt 0in'></td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.36%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Maintenance, utilities, and insurance </p> </td> <td width="0%" valign="bottom" style='width:.64%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.38%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="17%" valign="bottom" style='width:17.08%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>38,315 </p> </td> <td width="4%" valign="bottom" style='width:4.26%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.64%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.6%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="11%" valign="bottom" style='width:11.72%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>518,795 </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.36%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Payable to service fees </p> </td> <td width="0%" valign="bottom" style='width:.64%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.38%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17%" valign="bottom" style='width:17.08%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>64,139 </p> </td> <td width="4%" valign="bottom" style='width:4.26%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.64%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.6%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="11%" valign="bottom" style='width:11.72%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>87,723 </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.36%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Others </p> </td> <td width="0%" valign="bottom" style='width:.64%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.38%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="17%" valign="bottom" style='width:17.08%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>195,239 </p> </td> <td width="4%" valign="bottom" style='width:4.26%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="0%" valign="bottom" style='width:.64%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="2%" valign="bottom" style='width:2.6%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="11%" valign="bottom" style='width:11.72%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>824 </p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:#CCEEFF;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="58%" valign="bottom" style='width:58.36%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Total other payable </b></p> </td> <td width="0%" valign="bottom" style='width:.64%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="3%" valign="bottom" style='width:3.38%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> $ </p> </td> <td width="17%" valign="bottom" style='width:17.08%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>297,693</b></p> </td> <td width="4%" valign="bottom" style='width:4.26%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="0%" valign="bottom" style='width:.64%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td width="2%" valign="bottom" style='width:2.6%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> $ </b></p> </td> <td width="11%" valign="bottom" style='width:11.72%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b>607,341 </b></p> </td> <td width="1%" valign="bottom" style='width:1.3%;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0"> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td colspan="6" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>For the six months ended November 30, </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2012</b></p> </td> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2011</b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>P.R.China </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>2,378,565 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>47,713 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="55" style='border:none'></td> <td width="3" style='border:none'></td> <td width="6" style='border:none'></td> <td width="116" style='border:none'></td> <td width="6" style='border:none'></td> <td width="6" style='border:none'></td> <td width="6" style='border:none'></td> <td width="80" style='border:none'></td> <td width="3" style='border:none'></td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0"> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td colspan="6" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>For the six months ended November 30, </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>      2012 </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2011</b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Current </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (388,845 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>) </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (11,928 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>) </p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Deferred: </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> 39,573 </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> - </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total Income tax benefit (expense) </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (349,272 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>) </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (11,928 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>) </p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0"> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td colspan="6" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>For the six months ended November 30,</b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2012</b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'><b> </b></p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'><b>2011</b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b> </b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><b>Current assets and liabilities </b></p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Accounts receivable allowances </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>39,573 </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>- </p> </td> <td valign="bottom" style='background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> Deferred tax assets, net, current </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>39,573 </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td valign="bottom" style='background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>- </p> </td> <td valign="bottom" style='background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> <td valign="bottom" style='background:white;padding:0'></td> </tr> </table> </div>
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2013-01-10
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2011-11-30
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2012-07-26
0001315756
2012-07-25
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