Other Receivables

6 Months Ended

Nov. 30, 2011

Receivables [Abstract]

Other Receivables Disclosure [Text Block]

6.  Other Receivables

Other receivables in current assets amounted to $891,828 and $983,199 as of November 30, 2011 and May 31, 2011, respectively. Other receivables in current assets consists of other receivables related to the sale of construction in progress in Tangshan.

Other receivables in long-term assets amounted to $3,231,327 and $2,197,961 as of November 30, 2011 and May 31, 2011, respectively.

As of November 30, 2011, other receivables includes $2.93 million related to a construction in progress disposal to an unrelated party. On February 28, 2010, we sold construction in progress in Tangshan to an unrelated third party at a price of approximately $3.8 million. The amount is due in 4 annual equal installments starting September 1, 2010. The receivable is unsecured, interest free, and with fixed repayment dates. It also includes insurance claims and deposits, that are from unrelated parties, interest free, unsecured, and with no fixed repayment date, and advances to employees for business purposes.

The allowances on the other accounts receivable are recorded when circumstances indicate collection is doubtful for particular accounts receivable.  The Company provides for allowances on a specific account basis. Even though there is a default on payment, the Company expects payment in the next quarter; therefore, there is no provision for bad debt allowance made for the other receivables at November 30, 2011 and May 31, 2011.