Note 1 - Organization and Principal Activities

9 Months Ended

Feb. 28, 2014

Notes

Note 1 - Organization and Principal Activities

NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES

REDtone Asia, Inc. and subsidiaries (the “Company”) are a group of companies in The People’s Republic of China (“PRC”). The principal activities of the Company are that of a Telecommunications provider for mobile, fixed and international gateway services. REDtone provides a wide range of telecommunication services, including prepaid and postpaid discounted call services to corporate customers and consumers as well as prepaid mobile air-time top-up. The Company also offers prepaid shopping card services.

The Company’s major subsidiaries as of the balance sheet dates are illustrated as follows:

Name	Domicile and date of incorporation	Effective ownership	Principal activities
Redtone Telecommunication (China) Limited (“Redtone China”)	Hong Kong May 26, 2005	100%	Investment holding
Redtone Telecommunications (Shanghai) Limited (“Redtone Shanghai”)	The PRC July, 26, 2005	100%	Provides technical support services to group companies
Shanghai Hongsheng Net Telecommunication Company Limited (“Hongsheng”)#	The PRC November 29, 2006	100%#	Marketing and distribution of discounted call services to PRC consumer market
Shanghai Huitong Telecommunication Company Limited (“Huitong”)#	The PRC March, 26, 2007	100%#	Marketing and distribution of IP call and discounted call services in the PRC
Nantong Jiatong Investment Consultant Co., Ltd (“Nanjing Jiatong”)#	The PRC May 17, 2011	100%#	Investment holding
Shanghai QianYue Business Administration Co., Ltd. ("QBA")#	The PRC December 12, 2008	100%#	Provision of prepaid shopping-card services in the PRC
Shanghai Jiamao E-Commerce Company Limited (“Jiamao”)#	The PRC March 21, 2008	100%#	Marketing and distribution of products on the internet
Shanghai Xin Chang Information Technology Company Limited (“Xin Chang”)#	The PRC January 13, 2006	56%	Marketing and distribution of IP call and discounted call services in the PRC
# - Variable interest entities.  See also Footnote 14.