Operating Lease Commitment

6 Months Ended

Nov. 30, 2011

Leases, Operating [Abstract]

Operating Leases of Lessor Disclosure [Text Block]

22.  Operating Lease Commitment

As of November 30, 2011, the Company was committed to minimum rentals for the leased land under long-term non-cancellable operating leases as follows:

Twelve Months Ended November, 30,
2012	$	244,771
2013		175,352
2014		175,352
2015		175,352
2016		178,489
Thereafter		2,541,695
Total:	$	3,491,011

We currently have a ten-year lease with an annual payment of approximately $48,000, from March 1, 2008 to February 28, 2018, for our Beijing production base. We have built our offices and manufacturing facilities on this site. On April 30, 2011, this lease was ended due to demolition and we moved to a new location and entered into a new lease, which is from April 2011 to January 23, 2034 with a total payment of RMB 16,400,000. This lease requires us to make the total payment in full by October 2011. We also lease land for our Xi’an production facility. The annual payment is approximately $59,000. We also leased two offices in Beijing as our headquarter office. One office lease is from December 15, 2009 to December 14, 2011, with an annual payment of approximately $106,000. We decided to lease a new office instead of renewing this lease after it ended. The new lease is a one-year lease, starting on November 28, 2011, with annual payment of approximately $16,559. The other one is from July 11, 2010 to July 10, 2012, with an annual payment of approximately $48,000. However, this lease was ended on January 10, 2011 as we decided one office is enough.

Operating lease expenses amounted to $178,982 and $66,654 for the three months ended November 30, 2011 and 2010, respectively. Operating lease expenses amounted to $275,128 and $126,888 for the six months ended November 30, 2011 and 2010, respectively.