Note 8 - Related Party Transactions and Balances

3 Months Ended

Nov. 30, 2012

Notes

Note 8 - Related Party Transactions and Balances

NOTE 8 - RELATED PARTY TRANSACTIONS AND BALANCES

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.

The related parties of the company are comprised as follows:

Name of entity or individual	Relationship with the Company
Changzhou Hengchuan Plastics Co, Ltd	Entity controlled by Mr. Pan Shudong and His Wife
Changzhou Shiji Jinyue Packaging Co.,Ltd	Entity controlled by Mr. Pan Shudong’s Sister
Changzhou Jinyue Electronic Co.,Ltd	Entity controlled by Mr. Pan Shudong’s Sister
Changzhou Leyuan International Trade Co.,Ltd	Entity controlled by Mr. Pan Shudong’s Sister
Mr. Pan Shudong	Controlling person of China Metal Holding, Inc.
Ms. Li Xingmei	Mr. Pan Shudong’s Wife and Director of Changzhou Huayue Electronic Co.,Ltd
Pan Yile	Mr. Pan Shudong’s Daughter and Employee of Changzhou Huayue Electronic Co.,Ltd

 (i) Due from Related Party: 

Due from Related Parties, at November 30, 2012 and May 31, 2012, consisted of the following balances:

	Transaction	November 30, 2012		May 31, 2012
Changzhou Hengchuan Plastics Co, Ltd	Prepayment & Other Receivable	$	409,740		375,334
Changzhou Jinyue Electronics Co., Ltd	Accounts receivable		795		49,278
Changzhou Shiji Jinyue Packaging Co.,Ltd	Accounts receivable		127,342		371,873
Changzhou Shiji Jinyue Packaging Co.,Ltd	Advance to Suppliers		-		61,427
Pan Yile	Other Receivable		-		312,630
Mr. Pan Shudong	Due from Mr. Pan		357,720		187,156
Ms. Xinmei Li	Due from Mr. Pan		814		32,376
Total due from related parties		$	896,411	$	1,390,074

(ii) Due to Related Parties

Due to Related Parties at November 30, 2012 and May 31, 2012 consisted of the follows:  

		November 30, 2012		May 31, 2012
Changzhou Leyuan International Trade Co.,Ltd	Accounts payable	$	-	$	114,290
Pan Yile	Other payable		69,492		-
Changzhou Hengchuan Plastics Co, Ltd	Accounts payable		12,720		80,222
Total due to related parties		$	82,212	$	194,312