Note 3 - Summary of Significant Accounting Policies: (e) Foreign Currency Translation (Policies)

9 Months Ended

Feb. 28, 2013

Policies

(e) Foreign Currency Translation

(e) Foreign currency translation

The accompanying consolidated financial statements are presented in United States dollars (US$). The functional currencies of the Company are the Hong Kong dollar (HK$) and the Renminbi (RMB), respectively. Capital accounts of the financial statements are translated into United States dollars from HK$ or RMB at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the year. The translation rates are as follows:

	February 28, 2013	May 31, 2012	February 29, 2012
Year end RMB : US$ exchange rate	0.1587	0.1578	0.1589
Average yearly RMB : US$ exchange rate	0.1592	0.1585	0.1592
Year end HK$ : US$ exchange rate	0.1289	0.1288	0.1290
Average yearly HK$ : US$ exchange rate	0.1290	0.1288	0.1290

On July 21, 2005, the PRC changed its foreign currency exchange policy from a fixed RMB/US$ exchange rate into a flexible rate under the control of the PRC’s government.

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation.