REDtone Asia (RTAS) 10-Q 14 Apr 15 2015 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Feb. 28, 2015
Document and Entity Information:
Entity Registrant Name	REDtone Asia Inc
Document Type	10-Q
Document Period End Date	28-Feb-15
Amendment Flag	FALSE
Entity Central Index Key	1341319
Current Fiscal Year End Date	-26
Entity Common Stock, Shares Outstanding	282,315,325
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	RTAS

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Feb. 28, 2015	31-May-14
Current assets
Cash and cash equivalents	$4,990,771	$2,991,276
Inventories	50,626	3,974
Accounts receivable	2,217,873	2,898,976
Tax recoverable	23,432	23,372
Other receivables and deposits	698,897	1,083,269
Assets held for sale		1,713,011
Total current assets	7,981,599	8,713,878
Property, plant and equipment, net	1,286,815	1,451,894
Intangible assets, net	1,834,017	1,939,613
Interest in associates	1,722,666
Goodwill	0	610,386
Total assets	12,825,097	12,715,771
Current liabilities
Deferred income	1,679,383	743,793
Accounts payable	1,246,145	2,798,373
Accrued expenses and other payables	1,032,900	582,240
Amount due to a related company	154,371	148,791
Taxes payable	627,022	671,125
Liabilities related to assets held for sale		56,861
Total current liabilities	4,739,821	5,001,183
Deferred tax liabilities		4,780
Total liabilities	4,739,821	5,005,963
Equity
Common stock, US$0.0001 par value , 300,000,000 shares authorized; 282,315,325 shares issued and outstanding, respectively	28,232	28,232
Additional paid in capital	7,726,893	7,726,893
Less: Amount due from a related company	-3,303,193	-3,272,950
Retained earnings	2,657,337	2,172,842
Accumulated other comprehensive income	858,671	891,021
Total stockholders' equity	7,967,940	7,546,038
Non-controlling interests	117,336	163,770
Total equity	8,085,276	7,709,808
Total liabilities and stockholders' equity	$12,825,097	$12,715,771

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Feb. 28, 2015	31-May-14
Statement of Financial Position
Common Stock, par or stated value	$0.00	$0.00
Common Stock, shares authorized	300,000,000	300,000,000
Common Stock, shares issued	282,315,325	282,315,325
Common Stock, shares outstanding	282,315,325	282,315,325

Condensed_Consolidated_Stateme

Condensed Consolidated Statements Of Income And Comprehensive Income (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Continuing operations
Revenue	$1,536,250	$1,460,619	$6,097,699	$4,365,689
Other income and gains	20,125	12,900	151,229	110,350
Service costs	-1,267,397	-630,544	-4,858,845	-1,862,764
Personnel cost	-250,330	-230,729	-626,758	-560,718
Depreciation expense	-133,622	-121,473	-391,596	-361,071
Amortization expense	-33,240	-31,030	-106,455	-89,240
Administrative and other expenses	-228,194	-199,469	-722,580	-492,927
(Loss)/income before provision for income taxes	-356,408	260,274	-457,306	1,109,319
Income tax income	-19,460	-154,282	-12,072	-225,875
Net (loss)/income before non-controlling interest	-375,868	105,992	-469,378	883,444
Share of results by non-controlling interest	20,575	27,035	46,904	27,035
Net (loss)/income from continuing operations	-355,293	133,027	-422,474	910,479
Discontinued operations
Net loss		-76,666	-104,018	-229,892
Gain on disposal of subsidiaries			1,010,987
Net income/(loss) from discontinued operations		-76,666	906,969	-229,892
Net income/(loss) for the year
Net income/(loss) before non-controlling interest	-375,868	29,326	437,591	653,552
Share of results by non-controlling interest	20,575	27,035	46,904	27,035
Net income/(loss) for the year	-355,293	56,361	484,495	680,587
Other comprehensive income/(loss)
(Loss)/gain on foreign currency translation of continuing operations	-32,761	72,517	-49,512	51,000
Share of other comprehensive income/(loss) by non-controlling interest	-444	497	470	497
Other comprehensive income/(loss) attributable to shareholders of the Company	-33,205	73,014	-49,042	51,497
Gain on foreign currency translation of discontinued operations		694	17,162	11,740
Total other comprehensive income/(loss)	-33,205	73,708	-31,880	63,237
Total comprehensive income/(loss)
Attributable to continuing operations	-388,498	206,041	-471,516	961,976
Attributable to discontinued operations		-75,972	924,131	-218,152
Total comprehensive income/(loss)	($388,498)	$130,069	$452,615	$743,824
(Loss)/earnings per share, basic and diluted
continuing operations
discontinued operations
Weighted average number of shares	282,315,325	282,315,325	282,315,325	282,315,325

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Cash flows from continuing operating activities
Net (loss)/income before non-controlling interest	($469,378)	$883,444
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Amortization expense	106,455	89,240
Depreciation expense	391,596	361,071
Deferred tax income	-4,797	-11,110
Changes in operating assets and liabilities:
Decrease in accounts receivable	681,103	1,443,881
Increase in inventories	-46,652	-1,890
Decrease/(increase) in other receivables and deposits	384,372	-935,042
Increase in tax recoverable	-60	-216
Increase in deferred income	935,590	19,561
Decrease in accounts payable	-1,552,228	-1,808,255
(Decrease)/increase in tax payables	-44,103	270,273
Increase/(decrease) in accrued liabilities and other payables	450,660	99,212
Net cash (used in)/provided by continuing operating activities	832,558	410,169
Net cash used in discontinued operating activities	-113,811	-84,249
Net cash (used in)/provided by operating activities	718,747	325,920
Cash flows from investing activities - continuing operations
Purchase of property, plant and equipment	-110,515	-59,242
Increase in amount due from a related company	-30,243	-31,275
Increase in interest in associates	-1,722,666
Net cash used in acquisition of a subsidiary		-254,112
Proceeds from disposal of subsidiaries	4,565,935
Net cash provided by/(used in) continuing investing activities	2,702,511	-344,629
Net cash used in discontinued investing activities	-1,590,743
Net cash provided by/(used in) investing activities	1,111,768	-344,629
Cash flows from continuing financing activities
Decrease in amount due to discontinued operations	-1,375,268
(Decrease)/increase in amount due to related companies	5,580	39,921
Net cash (used in)/provided by continuing financing activities	-1,369,688	39,921
Net cash flows from discontinued financing activities
Net cash (used in)/provided by financing activities	-1,369,688	39,921
Net increase/(decrease) in cash and cash equivalents
Continuing operations	2,165,381	105,461
Discontinued operations	-1,704,554	-84,249
Net increase/(decrease) in cash and cash equivalents	460,827	21,212
Effect of exchange rate changes
Continuing operations	-165,886	8,847
Discontinued operations	17,162	-6,879
Effect of exchange rate changes	-148,724	1,968
Cash and cash equivalents at beginning of period
Continuing operations	2,991,276	3,681,851
Discontinued operations	1,687,392	1,797,240
Cash and cash equivalents at beginning of period	4,678,668	5,479,091
Less: Cash and cash equivalents included in assets held for sale	-1,687,392
Cash and cash equivalents of continuing operations at beginning of period	2,991,276	5,479,091
Cash and cash equivalents at end of period
Continuing operations	4,990,771	3,796,159
Discontinued operations		1,706,112
Cash and cash equivalents of continuing operations at end of period	4,990,771	5,502,271
Supplementary information - continuing operations
Cash paid for income taxes		17,068
Cash paid for interest

Note_1_Organization_and_Princi

Note 1 - Organization and Principal Activities	9 Months Ended
	Feb. 28, 2015
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 during the six months ended February 28, 2015 are illustrated as follows:
	Name	Domicile and date of incorporation	Effective ownership	Principal activities
	Redtone Telecommunication (China) Limited (“Redtone China”)	Hong Kong	100%	Investment holding
		26-May-05
	Redtone Telecommunications (Shanghai) Limited (“Redtone Shanghai”)	The PRC	100%	Provides technical support services to group companies
		26-Jul-05
	Shanghai Hongsheng Net Telecommunication Company Limited (“Hongsheng”) #	The PRC	100%	Marketing and distribution of discounted call services to PRC consumer market
		29-Nov-06
	Shanghai Huitong Telecommunication Company Limited (“Huitong”) #	The PRC	100%	Marketing and distribution of IP call and discounted call services in the PRC
		26-Mar-07
	Shanghai Jiamao E-Commerce Company Limited (“Jiamao”) #`	The PRC	100%	Marketing and distribution of products on the internet
		21-Mar-08
	Nantong Jiatong Investment Consultant Co., Ltd (“Nantong Jiatong”) #	The PRC	100%	Investment holding
		17-May-11
	Shanghai QianYue Business Administration Co., Ltd. ("QBA") #	The PRC	100%	Provision of prepaid shopping-card services in the PRC
		12-Dec-08
	Shanghai Xin Chang Information Technology Company Limited (“Xin Chang”) #	The PRC	56%	Marketing and distribution of IP call and discounted call services in the PRC
		13-Jan-06
	# - Variable interest entities
	The Company’s major associates during the six months ended February 28, 2015 are illustrated as follows:
	Name	Domicile and date of incorporation	Effective ownership	Principal activities
	Shanghai YuZhong Financial Information Service Co., Ltd (“YuZhong”) #	The PRC	49.80%	Investment holding company
		16-Jul-14
	Shanghai YuGuang Automobile Inspection Technology Co., Ltd (“YuGuang”) #	The PRC	20%	Investment holding company
		17-Jul-14
	Taizhou Haitai Motor Vehicle Inspection Co, Ltd. (“Haitai”) #	The PRC	10.20%	Inspection of motor vehicle
		31-Oct-13
	# - Variable interest entities
	Hong Sheng and QBA were disposed of during the period. See also Footnote 4.
	For continuing operations, segment reporting is not required as the revenue, profit or loss and total assets in association with the e-commerce business are immaterial to the Company’s revenue, reported profit or loss and total assets.
	On July 16, 2014, Huitong, Mao Hong, a director and nominee shareholder of certain VIEs, and Wei Gang, an independent third party  jointly incorporated YuZhong and they founders owned 49.8%, 25.1% and 25.1% of equity interests in YuZhong, respectively. Huitong has contributed RMB398,400 to Yuzhong during the third quarter of fiscal year 2015. Immediately after the capital injection, YuZhong became an associate company.
	YuZhong has not incurred any profit or loss during the nine months ended February 28, 2015.
	On July 17, 2014, Huitong and Mao Hong jointly incorporated YuGuang. Huitong and Mao Hong owns 20% and 80% of equity interests in YuGuang, respectively. Pursuant to the agreement, Huitong has contributed RMB200,000 to YuGuang during the period. Immediately after the capital injection, YuGuang became an associate company.
	YuGuang has not incurred any profit or loss during the nine months ended February 28, 2015.
	On September 11, 2014, YuGuang entered into an agreement with Zhou Jin Shan and Chen Xiu Lan to acquire 51% equity interest in Taizhou Haitai Motor Vehicle Inspection Co, Ltd. (“Haitai”) from Zhou Jin Shan at a consideration of RMB652,800. YuGuang also agreed to provide a shareholder’s loan of RMB11.2 million only after Chen Xiu Lan, the 49% shareholder, contributes an accumulated shareholder’s loan of RMB11.2 million to Haitai. Haitai is principally engaged in the provision of motor vehicle inspection service in the PRC. As of the period end date, the Company has advanced RMB10,000,000 to Haitai. The Company has no voting rights in Haitai until the shareholder’s loan requirement is fulfilled.
	Haitai has not incurred any profit or loss during the nine months ended February 28, 2015.

Note_2_Principles_of_Consolida

Note 2 - Principles of Consolidation	9 Months Ended
	Feb. 28, 2015
Notes
Note 2 - Principles of Consolidation	NOTE 2 – PRINCIPLES OF CONSOLIDATION
	The unaudited interim financial statements of the Company and the Company’s subsidiaries (see Note 1) for the nine months and three months ended February 28, 2015 and 2014 have been prepared pursuant to the rules & regulations of the SEC. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations; however the Company believes that the following disclosures are adequate to make the information presented not misleading. All significant intercompany balances and transactions have been eliminated. The functional currency for the majority of the Company’s operations is in Chinese Renminbi (“RMB”), while the reporting currency is U.S. Dollar.
	In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, consisting only of normal recurring accruals, necessary for a fair presentation of the Company’s financial position as of February 28, 2015, the results of its operations and cash flows for the nine months and three months ended February 28, 2015 and 2014.
	The results of operations for the nine months and three months ended February 28, 2015 are not necessarily indicative of the results for a full year period.

Note_3_Summary_of_Significant_

Note 3 - Summary of Significant Accounting Policies	9 Months Ended
	Feb. 28, 2015
Notes
Note 3 - Summary of Significant Accounting Policies	NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	(a) Cash and Cash Equivalents
	The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains bank accounts in mainland China and Hong Kong.
	(b) Fair Value of Financial Instruments
	The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, other receivables and deposits, tax recoverable, amount due from/(to) related parties, accounts payable, accrued expenses and other payables, and taxes payable.
	The estimated fair value amounts have been determined by the Company, using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.
	As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented, due to the short maturities of these instruments.
	(c) Revenue recognition
	The Company has adopted a revenue recognition policy for each type of operation according to ASC 605-45.
	Revenue represents the invoiced value of services rendered and receivable during the year. Revenue is recognized when all of the following criteria are met:
	-               Persuasive evidence of an arrangement exists;
	-               Delivery has occurred or services have been rendered;
	-               The seller’s price to the buyer is fixed or determinable; and
	-               Collectability is reasonably assured.
	Revenue recognition policy for each of the major products and services:
	1.             Discounted call services for consumer (EMS) as follows:
	•              Collaboration with China Tie Tong Telecommunications (“CTT”) – Redtone China is appointed as the sole distributor for EMS and will recognize revenue when airtime is utilized by the consumer and revenue is recognized on a net basis which is computed based on a fixed sharing ratio of the total airtime utilized by consumers after netting the direct traffic termination costs and incidental expenses. Redtone China’s role for Business Collaboration with CTT is as an “Agent” as Redtone China is the sole distributor for the EMS brand owned and controlled by CTT; and
	•              Collaboration with other telecommunication providers – Redtone China will act as a discounted consumer call Reseller whereby Redtone China determines the service and package specification and the pricing policy whereas China Unicom acts as a passive termination partner for call traffic. Redtone China will pay China Unicom solely based on call traffic termination by China Unicom at a prescribed rate (defined as traffic termination cost on the books of Redtone China). In this regard, Redtone China will recognize revenue when airtime is utilized by the consumer and the revenue recognized is the gross value of the call charges. Redtone China’s role for Business Collaboration with China Unicom is that of “Principal” as China Unicom is playing a passive role as the traffic termination partner while Redtone China is fully responsible for the entire management of the discounted call services.
	As this is a prepaid product, there is an expiration date for the product sold. If the airtime is not utilized by the expiration date, which is currently one year from the activation date, the product will be deemed to be expired and the revenue recognized at the time is the remaining gross value of the expired prepaid product.
	2.             Discounted call services for corporate consumers is as follows:
	•              Collaboration with CTT – the revenue recognized is the commission earned from distributing the discounted call services to corporate customers; and
	•              Collaboration with other telecommunication providers –the revenue recognized is the commission earned from distributing the discounted call services to corporate customers.
	3.             Reload services for prepaid mobile services – revenue recognized is the commission earned.
	4.             Discontinued prepaid shopping-card services – revenue recognized is the commission earned.
	(d) Earnings per share
	Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of February 28, 2015 and 2014, there were no dilutive securities outstanding.
	(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:
		28-Feb-15	31-May-14	28-Feb-14
	Period end RMB : US$ exchange rate	0.1627	0.1621	0.1633
	Average period RMB : US$ exchange rate	0.1625	0.1629	0.163
	Period end HK$ : US$ exchange rate	0.129	0.129	0.1289
	Average period HK$ : US$ exchange rate	0.129	0.129	0.1289
	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.
	(f) Fair Value of Financial Instruments
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:
	-               Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets.
	-               Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
	-               Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.
	We measure the fair value of money market funds and equity securities based on quoted prices in active markets for identical assets or liabilities. All other financial instruments were valued based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.
	(g) Recent Accounting Pronouncements
	In July 2013, The FASB has issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force).
	U.S. GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets.
	This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted.
	In April 2014, the FASB issued ASU No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." This ASU relates to discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity's operations and financial results. The standard expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2014. This ASU is not expected to have an impact on our financial statements or disclosures
	The Company does not expect the adoption of these guidance to have a material impact on its consolidated financial statements.

Note_4_Disposal_of_Subsidiarie

Note 4 - Disposal of Subsidiaries and Discontinued Operation	9 Months Ended
	Feb. 28, 2015
Notes
Note 4 - Disposal of Subsidiaries and Discontinued Operation	NOTE 4 – DISPOSAL OF SUBSIDIARIES AND DISCONTINUED OPERATION
	On July 25, 2014, the Company entered into an agreement to dispose of its entire equity interest in Hongsheng, a VIE subsidiary, to Guotai Investment Holdings Limited at a total cash consideration of approximately $4.54 million.
	Pursuant to the agreement, Hongsheng shall transfer all its operations, assets and liabilities other than investment in QBA prior to the completion of the above transaction. Therefore, the entire arrangement is to dispose of the shell of Hongsheng together with the entire interest in QBA.
	The completion of disposal is subject to the transfer of the aforementioned operations, assets and liabilities, and also statutory approval by PRC local government.
	As of the disposal date, QBA’s assets and liabilities are summarized as follows:
		25-Jul-14	31-May-14
	Assets
	Cash and cash equivalents	$2,969,661	$1,687,392
	Inventories	6,708	6,669
	Accounts receivable	525	522
	Other receivables and deposits	8,892	8,841
	Property, plant and equipment, net	5,937	9,587
	Total assets	2,991,723	1,713,011
	Liabilities
	Accounts payable	29,699	32,701
	Accrued expenses and other payables	17,462	24,160
	Total current liabilities	47,161	56,861
	Net assets of QBA	2,944,562	1,656,150
	The assets of QBA as of May 31, 2014 are classified as assets held for sale and liabilities in the condensed consolidated balance sheet.
	The results of QBA during the period (up to date of disposal) are summarized as follows:
		From June 1, 2014 to July 25, 2014	Nine months ended February 28, 2014
	Revenue	$3	$208
	Other income and gains	164	74,895
	Service costs	-	-57
	Personnel cost	-93,580	-120,695
	Depreciation expense	-3,689	-146,331
	Administrative and other expenses	-6,916	-37,912
	Net loss	-104,018	-229,892
	The results of QBA for the nine months ended February 28, 2015 and 2014, respectively, are reported as discontinued operations in the condensed consolidated statement of income and comprehensive income.
	The gain on disposal of QBA is analyzed as follows:
	Consideration received	4,565,936
	Less: Net assets of QBA	(2,944,563)
	Less: Goodwill arising in the acquisition of QBA	(610,386)
	Gain on disposal	1,010,987

Note_5_Acquisition_of_A_Subsid

Note 5 - Acquisition of A Subsidiary	9 Months Ended
	Feb. 28, 2015
Notes
Note 5 - Acquisition of A Subsidiary	NOTE 5 – ACQUISITION OF A SUBSIDIARY
	On January 22, 2014, the Company acquired 56% equity interest in Xin Chang. Consideration of $245,655 was paid upon signing of the Acquisition Agreement; while another $489,900 to be paid to Xin Chang as an operating fund in batches based on Xin Chang’s financial needs as determined by the Company.
	The results of Xin Chang for the nine months ended February 28, 2015 and 2014 are as follows:
		Nine months ended February 28, 2015	Nine months ended February 28, 2014 (post acquisition)
	Revenue	$1,290,312	$216,474
	Other income	5,133	-
	Cost of services	-1,137,258	-233,916
	Personnel cost	-109,367	-23,811
	Depreciation expense	-18,251	-
	Amortization expense	-16,343	-
	Administrative and other expenses	-120,814	-20,200
	Net income for the period	-106,588	-61,453

Note_6_Cash_Cash_Equivalents

Note 6 - Cash & Cash Equivalents	9 Months Ended
	Feb. 28, 2015
Notes
Note 6 - Cash & Cash Equivalents	NOTE 6 - CASH & CASH EQUIVALENTS
	As of the balance sheet dates, cash & cash equivalents are summarized as follows:
		28-Feb-15	31-May-14
	Cash and bank	$408,763	$494,552
	Time deposits	4,582,008	2,496,724
	Total	$4,990,771	$2,991,276
	As of the balance sheet dates, the time deposits had a maturity term of less than three months.

Note_7_Other_Receivables_and_D

Note 7 - Other Receivables and Deposits	9 Months Ended
	Feb. 28, 2015
Notes
Note 7 - Other Receivables and Deposits	NOTE 7 – OTHER RECEIVABLES AND DEPOSITS
	Other receivables and deposits as of the dates were summarized as follows:
		28-Feb-15	31-May-14
	Deposits	$-	$119,400
	Temporary advance	381,223	810,625
	Other receivables	317,674	153,244
	Total	$698,897	$1,083,269

Note_8_Property_Plant_and_Equi

Note 8 - Property, Plant and Equipment	9 Months Ended
	Feb. 28, 2015
Notes
Note 8 - Property, Plant and Equipment	NOTE 8 – PROPERTY, PLANT AND EQUIPMENT
	Property, plant and equipment as of the balance sheet dates are summarized as follows:
		28-Feb-15	31-May-14
	At cost:
	Computer and software	$70,490	$102,023
	Telecommunication equipment	5,460,732	5,297,796
	Furniture, fixtures and equipment	58,420	61,887
	Motor vehicles	126,456	126,133
	Leasehold improvement	32,736	35,319
		5,748,834	5,623,158
	Less: Accumulated depreciation	-4,462,019	-4,171,264
	Property, plant and equipment, net	$1,286,815	$1,451,894
	Depreciation expense attributable to continuing operations for the nine months ended February 28, 2015 and 2014 amounted to $391,596 and $361,071, respectively. Depreciation expense attributable to discontinued operations for the nine months ended February 28, 2015 and 2014 amounted to $3,689 and $146,331, respectively.

Note_9_Intangible_Assets

Note 9 - Intangible Assets	9 Months Ended
	Feb. 28, 2015
Notes
Note 9 - Intangible Assets	NOTE 9 – INTANGIBLE ASSETS
	Intangible assets as of the balance sheet dates are summarized as follows:
		28-Feb-15	31-May-14
	At cost:
	Operating concession	$435,375	$438,670
	Customer base	81,270	81,450
	IT license and software	2,281,079	2,276,992
		2,797,724	2,797,112
	Less: Accumulated depreciation	-963,707	-857,499
	Intangible assets, net	$1,834,017	$1,939,613
	Amortization expense attributable to continuing operations for the nine months ended February 28, 2015 and 2014 amounted to $106,455 and $89,240, respectively. Amortization expense attributable to discontinued operations for the nine months ended February 28, 2015 and 2014 amounted to $Nil and $Nil, respectively.

Note_10_Goodwill

Note 10 - Goodwill	9 Months Ended
	Feb. 28, 2015
Notes
Note 10 - Goodwill	NOTE 10 – GOODWILL
	Goodwill as of the balance sheet dates were summarized as follows:
		28-Feb-15	31-May-14
	Arising from acquisition of QBA	$-	$610,386
	QBA was disposed of during the period.

Note_11_Amount_Due_From_to_Rel

Note 11 - Amount Due From (to) Related Companies	9 Months Ended
	Feb. 28, 2015
Notes
Note 11 - Amount Due From (to) Related Companies	NOTE 11 – AMOUNT DUE FROM (TO) RELATED COMPANIES
	As of the balance sheet dates, amount due from a related company that included in the Company’s equity accounts were analyzed as follows:
		28-Feb-15	31-May-14
	Fellow subsidiary:
	REDtone Technology Sdn. Bhd.	$3,303,193	$3,272,950
	The amount represents advances to the related company. As of the balance sheet dates, the amount is unsecured, non-interest bearing and is expected to be repaid within 2015.
	Amount due to a related company as of the balance sheet dates were summarized as follows:
		28-Feb-15	31-May-14
	Fellow subsidiary:
	Redtone Telecommunications Sdn Bhd	$154,371	$148,791
	The amount due to the related company is unsecured, non-interest bearing and has no fixed repayment date.

Note_12_Accrued_Expenses_and_O

Note 12 - Accrued Expenses and Other Payables	9 Months Ended
	Feb. 28, 2015
Notes
Note 12 - Accrued Expenses and Other Payables	NOTE 12 – ACCRUED EXPENSES AND OTHER PAYABLES
	Accrued expenses and other payables as of the balance sheet dates were summarized as follows:
		28-Feb-15	31-May-14
	Accrued expenses	$295,896	$345,869
	Other payables	737,004	236,371
	Total	1,032,900	582,240

Note_13_Deferred_Income

Note 13 - Deferred Income	9 Months Ended
	Feb. 28, 2015
Notes
Note 13 - Deferred Income	NOTE 13 – DEFERRED INCOME
	Deferred income consists of prepaid air-time sold which is yet to be utilized. The basis of revenue recognition for discounted call services is based on actual call charges made by end users. When calls are being made, the amount will be deducted from deferred income to the statement of income, net of call costs and expenses.

Note_14_Taxes_Payable

Note 14 - Taxes Payable	9 Months Ended
	Feb. 28, 2015
Notes
Note 14 - Taxes Payable
	NOTE 14 – TAXES PAYABLE
	Taxes payable at the balance sheet dates are summarized as follows:
		28-Feb-15	31-May-14
	Income tax payable	$474,858	$456,922
	Business tax and other tax payables	152,164	214,203
	Total	$627,022	$671,125
	Business tax represents PRC sales tax imposed upon the Company’s services provided in the PRC.  Tax rates range from 3% to 5% depending on the nature of the taxable activities.
	Income tax represents PRC income tax. The provision for PRC income tax is based on a statutory rate of 25% of the assessable income of the PRC subsidiaries as determined in accordance with the relevant income tax rules and regulations of the PRC.

Note_15_Income_Tax_Income

Note 15 - Income Tax Income	9 Months Ended
	Feb. 28, 2015
Notes
Note 15 - Income Tax Income	NOTE 15 – INCOME TAX INCOME
		Nine months ended February 28, 2015	Nine months ended February 28, 2014
	Current income tax in PRC and Hong Kong	$16,869	$236,985
	Deferred tax income	(4,797)	-11,110
	Total	$12,072	$225,875
	On April 29, 2014, RTSH obtained a tax benefit which the income tax for 2013 and 2014 calendar year is exempt and the income tax for 2015, 2016 and 2017 calendar year will be subject to half rate deduction.
	A reconciliation of the expected tax with the actual tax expense is as follows:
		Nine months ended February 28, 2015	Nine months ended February 28, 2014
	(Loss)/income before provision for income taxes – continuing operations	$(457,306)	$1,109,319
	Expected PRC income tax expense at statutory tax rate of 25%	(114,326)	277,330
	Different tax rate for PRC/Hong Kong local authority	7,586	15,233
	Expenses not deductible for tax	13,933	4,616
	Utilization of tax loss brought forward	(32,677)	(165,108)
	Tax loss not provided for deferred tax	137,556	93,804
	Total	$12,072	$225,875
	(i) All PRC subsidiaries are subject to PRC tax. The provision for PRC income tax is based on a statutory rate of 25% of the assessable income of the PRC subsidiaries as determined in accordance with the relevant income tax rules and regulations of the PRC.
	(ii) Hong Kong subsidiaries are subject to Hong Kong profits tax. The provision for Hong Kong profits tax is based on a statutory rate of 16.5% of assessable profits in Hong Kong.
	(iii) BVI subsidiaries are not subject to profits tax.

Note_16_Variable_Interest_Enti

Note 16 - Variable Interest Entities ("vies")	9 Months Ended
	Feb. 28, 2015
Notes
Note 16 - Variable Interest Entities ("vies")	NOTE 16 – VARIABLE INTEREST ENTITIES (“VIEs”)
	The condensed consolidated financial statements include the financial statements of VIEs for which the Company is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. The results of subsidiaries and VIEs acquired or disposed of during the period are recorded in the consolidated income statements from the effective date of acquisition or up to the effective date of disposal, as appropriate.
	The Company has entered into various loan agreements together with equity pledge agreements with nominees which give the Company power to direct the activities of VIEs.
	The total consolidated VIE assets and liabilities (QBA is included in comparative figures) reflected on the Company’s balance sheet are as follows:
		28-Feb-15	31-May-14
	Assets
	Cash and cash equivalents	$165,454	$1,888,407
	Inventories	50,626	10,643
	Accounts receivable	2,217,873	2,899,498
	Tax recoverable	23,432	23,372
	Other receivables and deposits	669,433	1,037,508
	Goodwill	-	617,454
	Property, plant and equipment, net	196,771	108,371
	Intangible assets, net	473,188	495,020
	Interest in associates	1,722,666	-
	Total assets (not include amount due from intra-group companies)	5,519,443	7,080,273
	Liabilities
	Deferred income	1,715,593	779,960
	Accounts payable	1,225,198	2,810,592
	Accrued expenses and other payables	1,306,648	452,527
	Taxes payable	27,531	68,484
	Total current liabilities	4,274,970	4,111,563
	The results of VIEs (QBA is included in comparative figures) are as follows, and are included in the consolidated statements of income of the Company:
		Nine months ended February 28, 2015	Nine months ended February 28, 2014
	Revenue	$5,924,714	$4,093,086
	Other income and gains	976,254	34,397
	Service costs (Not including service costs payable to intra-group companies)	(4,846,205)	(1,852,309)
	Personnel cost	(426,808)	(290,799)
	Depreciation expense	(35,467)	(550,068)
	Amortization expense	(23,125)	(165,056)
	Administrative and other expenses	(394,402)	(37,590)
	Income before provision for income taxes (Not including service costs payable to intra-group companies)	1,174,961	1,231,661
	Income tax income/(provision for income taxes)	(16,869)	(17,032)
	Net income	1,158,092	1,214,629

Note_3_Summary_of_Significant_1

Note 3 - Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Feb. 28, 2015
Policies
(a) Cash and Cash Equivalents	(a) Cash and Cash Equivalents
	The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains bank accounts in mainland China and Hong Kong.
(b) Fair Value of Financial Instruments	(b) Fair Value of Financial Instruments
	The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, other receivables and deposits, tax recoverable, amount due from/(to) related parties, accounts payable, accrued expenses and other payables, and taxes payable.
	The estimated fair value amounts have been determined by the Company, using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.
	As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented, due to the short maturities of these instruments.
(c) Revenue Recognition	(c) Revenue recognition
	The Company has adopted a revenue recognition policy for each type of operation according to ASC 605-45.
	Revenue represents the invoiced value of services rendered and receivable during the year. Revenue is recognized when all of the following criteria are met:
	-               Persuasive evidence of an arrangement exists;
	-               Delivery has occurred or services have been rendered;
	-               The seller’s price to the buyer is fixed or determinable; and
	-               Collectability is reasonably assured.
	Revenue recognition policy for each of the major products and services:
	1.             Discounted call services for consumer (EMS) as follows:
	•              Collaboration with China Tie Tong Telecommunications (“CTT”) – Redtone China is appointed as the sole distributor for EMS and will recognize revenue when airtime is utilized by the consumer and revenue is recognized on a net basis which is computed based on a fixed sharing ratio of the total airtime utilized by consumers after netting the direct traffic termination costs and incidental expenses. Redtone China’s role for Business Collaboration with CTT is as an “Agent” as Redtone China is the sole distributor for the EMS brand owned and controlled by CTT; and
	•              Collaboration with other telecommunication providers – Redtone China will act as a discounted consumer call Reseller whereby Redtone China determines the service and package specification and the pricing policy whereas China Unicom acts as a passive termination partner for call traffic. Redtone China will pay China Unicom solely based on call traffic termination by China Unicom at a prescribed rate (defined as traffic termination cost on the books of Redtone China). In this regard, Redtone China will recognize revenue when airtime is utilized by the consumer and the revenue recognized is the gross value of the call charges. Redtone China’s role for Business Collaboration with China Unicom is that of “Principal” as China Unicom is playing a passive role as the traffic termination partner while Redtone China is fully responsible for the entire management of the discounted call services.
	As this is a prepaid product, there is an expiration date for the product sold. If the airtime is not utilized by the expiration date, which is currently one year from the activation date, the product will be deemed to be expired and the revenue recognized at the time is the remaining gross value of the expired prepaid product.
	2.             Discounted call services for corporate consumers is as follows:
	•              Collaboration with CTT – the revenue recognized is the commission earned from distributing the discounted call services to corporate customers; and
	•              Collaboration with other telecommunication providers –the revenue recognized is the commission earned from distributing the discounted call services to corporate customers.
	3.             Reload services for prepaid mobile services – revenue recognized is the commission earned.
	4.             Discontinued prepaid shopping-card services – revenue recognized is the commission earned.
(d) Earnings Per Share	(d) Earnings per share
	Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of February 28, 2015 and 2014, there were no dilutive securities outstanding.
(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:
		28-Feb-15	31-May-14	28-Feb-14
	Period end RMB : US$ exchange rate	0.1627	0.1621	0.1633
	Average period RMB : US$ exchange rate	0.1625	0.1629	0.163
	Period end HK$ : US$ exchange rate	0.129	0.129	0.1289
	Average period HK$ : US$ exchange rate	0.129	0.129	0.1289
	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.
(f) Fair Value of Financial Instruments	(f) Fair Value of Financial Instruments
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:
	-               Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets.
	-               Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
	-               Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.
	We measure the fair value of money market funds and equity securities based on quoted prices in active markets for identical assets or liabilities. All other financial instruments were valued based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.
(g) Recent Accounting Pronouncements	(g) Recent Accounting Pronouncements
	In July 2013, The FASB has issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force).
	U.S. GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets.
	This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted.
	In April 2014, the FASB issued ASU No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." This ASU relates to discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity's operations and financial results. The standard expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2014. This ASU is not expected to have an impact on our financial statements or disclosures
	The Company does not expect the adoption of these guidance to have a material impact on its consolidated financial statements.

Note_1_Organization_and_Princi1

Note 1 - Organization and Principal Activities: Company's Major Subsidiaries (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Company's Major Subsidiaries
	Name	Domicile and date of incorporation	Effective ownership	Principal activities
	Redtone Telecommunication (China) Limited (“Redtone China”)	Hong Kong	100%	Investment holding
		26-May-05
	Redtone Telecommunications (Shanghai) Limited (“Redtone Shanghai”)	The PRC	100%	Provides technical support services to group companies
		26-Jul-05
	Shanghai Hongsheng Net Telecommunication Company Limited (“Hongsheng”) #	The PRC	100%	Marketing and distribution of discounted call services to PRC consumer market
		29-Nov-06
	Shanghai Huitong Telecommunication Company Limited (“Huitong”) #	The PRC	100%	Marketing and distribution of IP call and discounted call services in the PRC
		26-Mar-07
	Shanghai Jiamao E-Commerce Company Limited (“Jiamao”) #`	The PRC	100%	Marketing and distribution of products on the internet
		21-Mar-08
	Nantong Jiatong Investment Consultant Co., Ltd (“Nantong Jiatong”) #	The PRC	100%	Investment holding
		17-May-11
	Shanghai QianYue Business Administration Co., Ltd. ("QBA") #	The PRC	100%	Provision of prepaid shopping-card services in the PRC
		12-Dec-08
	Shanghai Xin Chang Information Technology Company Limited (“Xin Chang”) #	The PRC	56%	Marketing and distribution of IP call and discounted call services in the PRC
		13-Jan-06
	# - Variable interest entities
	The Company’s major associates during the six months ended February 28, 2015 are illustrated as follows:
	Name	Domicile and date of incorporation	Effective ownership	Principal activities
	Shanghai YuZhong Financial Information Service Co., Ltd (“YuZhong”) #	The PRC	49.80%	Investment holding company
		16-Jul-14
	Shanghai YuGuang Automobile Inspection Technology Co., Ltd (“YuGuang”) #	The PRC	20%	Investment holding company
		17-Jul-14
	Taizhou Haitai Motor Vehicle Inspection Co, Ltd. (“Haitai”) #	The PRC	10.20%	Inspection of motor vehicle
		31-Oct-13

Note_3_Summary_of_Significant_2

Note 3 - Summary of Significant Accounting Policies: (e) Foreign Currency Translation: Foreign Currency Disclosure (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Foreign Currency Disclosure		28-Feb-15	31-May-14	28-Feb-14
	Period end RMB : US$ exchange rate	0.1627	0.1621	0.1633
	Average period RMB : US$ exchange rate	0.1625	0.1629	0.163
	Period end HK$ : US$ exchange rate	0.129	0.129	0.1289
	Average period HK$ : US$ exchange rate	0.129	0.129	0.1289

Note_4_Disposal_of_Subsidiarie1

Note 4 - Disposal of Subsidiaries and Discontinued Operation: QBA's Assets, Liabilities, and Results (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
QBA's Assets, Liabilities, and Results	As of the disposal date, QBA’s assets and liabilities are summarized as follows:
		25-Jul-14	31-May-14
	Assets
	Cash and cash equivalents	$2,969,661	$1,687,392
	Inventories	6,708	6,669
	Accounts receivable	525	522
	Other receivables and deposits	8,892	8,841
	Property, plant and equipment, net	5,937	9,587
	Total assets	2,991,723	1,713,011
	Liabilities
	Accounts payable	29,699	32,701
	Accrued expenses and other payables	17,462	24,160
	Total current liabilities	47,161	56,861
	Net assets of QBA	2,944,562	1,656,150
	The assets of QBA as of May 31, 2014 are classified as assets held for sale and liabilities in the condensed consolidated balance sheet.
	The results of QBA during the period (up to date of disposal) are summarized as follows:
		From June 1, 2014 to July 25, 2014	Nine months ended February 28, 2014
	Revenue	$3	$208
	Other income and gains	164	74,895
	Service costs	-	-57
	Personnel cost	-93,580	-120,695
	Depreciation expense	-3,689	-146,331
	Administrative and other expenses	-6,916	-37,912
	Net loss	-104,018	-229,892

Note_5_Acquisition_of_A_Subsid1

Note 5 - Acquisition of A Subsidiary: Operating Results of Xin Chang (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Operating Results of Xin Chang	The results of Xin Chang for the nine months ended February 28, 2015 and 2014 are as follows:
		Nine months ended February 28, 2015	Nine months ended February 28, 2014 (post acquisition)
	Revenue	$1,290,312	$216,474
	Other income	5,133	-
	Cost of services	-1,137,258	-233,916
	Personnel cost	-109,367	-23,811
	Depreciation expense	-18,251	-
	Amortization expense	-16,343	-
	Administrative and other expenses	-120,814	-20,200
	Net income for the period	-106,588	-61,453

Note_6_Cash_Cash_Equivalents_S

Note 6 - Cash & Cash Equivalents: Schedule of Cash and Cash Equivalents (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Schedule of Cash and Cash Equivalents	As of the balance sheet dates, cash & cash equivalents are summarized as follows:
		28-Feb-15	31-May-14
	Cash and bank	$408,763	$494,552
	Time deposits	4,582,008	2,496,724
	Total	$4,990,771	$2,991,276

Note_7_Other_Receivables_and_D1

Note 7 - Other Receivables and Deposits: Schedule of Other Receivables and Deposits (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Schedule of Other Receivables and Deposits	Other receivables and deposits as of the dates were summarized as follows:
		28-Feb-15	31-May-14
	Deposits	$-	$119,400
	Temporary advance	381,223	810,625
	Other receivables	317,674	153,244
	Total	$698,897	$1,083,269

Note_8_Property_Plant_and_Equi1

Note 8 - Property, Plant and Equipment: Property, Plant and Equipment (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Property, Plant and Equipment	Property, plant and equipment as of the balance sheet dates are summarized as follows:
		28-Feb-15	31-May-14
	At cost:
	Computer and software	$70,490	$102,023
	Telecommunication equipment	5,460,732	5,297,796
	Furniture, fixtures and equipment	58,420	61,887
	Motor vehicles	126,456	126,133
	Leasehold improvement	32,736	35,319
		5,748,834	5,623,158
	Less: Accumulated depreciation	-4,462,019	-4,171,264
	Property, plant and equipment, net	$1,286,815	$1,451,894

Note_9_Intangible_Assets_Sched

Note 9 - Intangible Assets: Schedule of Intangible Assets (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Schedule of Intangible Assets	Intangible assets as of the balance sheet dates are summarized as follows:
		28-Feb-15	31-May-14
	At cost:
	Operating concession	$435,375	$438,670
	Customer base	81,270	81,450
	IT license and software	2,281,079	2,276,992
		2,797,724	2,797,112
	Less: Accumulated depreciation	-963,707	-857,499
	Intangible assets, net	$1,834,017	$1,939,613

Note_10_Goodwill_Schedule_of_G

Note 10 - Goodwill: Schedule of Goodwill (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Schedule of Goodwill	Goodwill as of the balance sheet dates were summarized as follows:
		28-Feb-15	31-May-14
	Arising from acquisition of QBA	$-	$610,386

Note_11_Amount_Due_From_to_Rel1

Note 11 - Amount Due From (to) Related Companies: Due From Related Party (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Due From Related Party	As of the balance sheet dates, amount due from a related company that included in the Company’s equity accounts were analyzed as follows:
		28-Feb-15	31-May-14
	Fellow subsidiary:
	REDtone Technology Sdn. Bhd.	$3,303,193	$3,272,950
	The amount represents advances to the related company. As of the balance sheet dates, the amount is unsecured, non-interest bearing and is expected to be repaid within 2015.
	Amount due to a related company as of the balance sheet dates were summarized as follows:
		28-Feb-15	31-May-14
	Fellow subsidiary:
	Redtone Telecommunications Sdn Bhd	$154,371	$148,791

Note_12_Accrued_Expenses_and_O1

Note 12 - Accrued Expenses and Other Payables: Schedule of Accrued Expenses and Other Payables (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Schedule of Accrued Expenses and Other Payables	Accrued expenses and other payables as of the balance sheet dates were summarized as follows:
		28-Feb-15	31-May-14
	Accrued expenses	$295,896	$345,869
	Other payables	737,004	236,371
	Total	1,032,900	582,240

Note_14_Taxes_Payable_Schedule

Note 14 - Taxes Payable: Schedule of Taxes Payable (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Schedule of Taxes Payable	Taxes payable at the balance sheet dates are summarized as follows:
		28-Feb-15	31-May-14
	Income tax payable	$474,858	$456,922
	Business tax and other tax payables	152,164	214,203
	Total	$627,022	$671,125

Note_15_Income_Tax_Income_Sche

Note 15 - Income Tax Income: Schedule of Components of Income Tax Expense (Benefit) (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Schedule of Components of Income Tax Expense (Benefit)
		Nine months ended February 28, 2015	Nine months ended February 28, 2014
	Current income tax in PRC and Hong Kong	$16,869	$236,985
	Deferred tax income	(4,797)	-11,110
	Total	$12,072	$225,875

Note_15_Income_Tax_Income_Sche1

Note 15 - Income Tax Income: Schedule of Effective Income Tax Rate Reconciliation (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Schedule of Effective Income Tax Rate Reconciliation	A reconciliation of the expected tax with the actual tax expense is as follows:
		Nine months ended February 28, 2015	Nine months ended February 28, 2014
	(Loss)/income before provision for income taxes – continuing operations	$(457,306)	$1,109,319
	Expected PRC income tax expense at statutory tax rate of 25%	(114,326)	277,330
	Different tax rate for PRC/Hong Kong local authority	7,586	15,233
	Expenses not deductible for tax	13,933	4,616
	Utilization of tax loss brought forward	(32,677)	(165,108)
	Tax loss not provided for deferred tax	137,556	93,804
	Total	$12,072	$225,875

Note_16_Variable_Interest_Enti1

Note 16 - Variable Interest Entities ("vies"): Schedule of Consolidated VIEs (Tables)	9 Months Ended
	Feb. 28, 2015
Tables/Schedules
Schedule of Consolidated VIEs	The total consolidated VIE assets and liabilities (QBA is included in comparative figures) reflected on the Company’s balance sheet are as follows:
		28-Feb-15	31-May-14
	Assets
	Cash and cash equivalents	$165,454	$1,888,407
	Inventories	50,626	10,643
	Accounts receivable	2,217,873	2,899,498
	Tax recoverable	23,432	23,372
	Other receivables and deposits	669,433	1,037,508
	Goodwill	-	617,454
	Property, plant and equipment, net	196,771	108,371
	Intangible assets, net	473,188	495,020
	Interest in associates	1,722,666	-
	Total assets (not include amount due from intra-group companies)	5,519,443	7,080,273
	Liabilities
	Deferred income	1,715,593	779,960
	Accounts payable	1,225,198	2,810,592
	Accrued expenses and other payables	1,306,648	452,527
	Taxes payable	27,531	68,484
	Total current liabilities	4,274,970	4,111,563
	The results of VIEs (QBA is included in comparative figures) are as follows, and are included in the consolidated statements of income of the Company:
		Nine months ended February 28, 2015	Nine months ended February 28, 2014
	Revenue	$5,924,714	$4,093,086
	Other income and gains	976,254	34,397
	Service costs (Not including service costs payable to intra-group companies)	(4,846,205)	(1,852,309)
	Personnel cost	(426,808)	(290,799)
	Depreciation expense	(35,467)	(550,068)
	Amortization expense	(23,125)	(165,056)
	Administrative and other expenses	(394,402)	(37,590)
	Income before provision for income taxes (Not including service costs payable to intra-group companies)	1,174,961	1,231,661
	Income tax income/(provision for income taxes)	(16,869)	(17,032)
	Net income	1,158,092	1,214,629

Note_1_Organization_and_Princi2

Note 1 - Organization and Principal Activities (Details) (USD $)	9 Months Ended
	Feb. 28, 2015	Sep. 11, 2014
Trading Symbol	RTAS
China, Yuan Renminbi
Shareholders loan to be funded, amount	11,200,000
Shanghai Huitong Telecommunication Company Limited
Effective Ownership	100.00%
Taizhou Haitai Motor Vehicle Inspection Co, Ltd.
Effective Ownership	10.20%	51.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	49.00%
Taizhou Haitai Motor Vehicle Inspection Co, Ltd. | China, Yuan Renminbi
Advances to Affiliate	10,000,000
Equity purchase, amount	652,800
Shanghai Yuzhong Financial Information Service Co Ltd
Effective Ownership	49.80%
Advances to Affiliate	398,400
Shanghai Yuzhong Financial Information Service Co Ltd | Shanghai Huitong Telecommunication Company Limited
Effective Ownership	49.80%
Shanghai Yuzhong Financial Information Service Co Ltd | Mao Hong
Effective Ownership	25.10%
Shanghai Yuzhong Financial Information Service Co Ltd | Wei Gang
Effective Ownership	25.10%
Shanghai Yuguang Automobile Inspection Technology Co Ltd
Effective Ownership	20.00%
Advances to Affiliate	200,000
Shanghai Yuguang Automobile Inspection Technology Co Ltd | Shanghai Huitong Telecommunication Company Limited
Effective Ownership	20.00%
Shanghai Yuguang Automobile Inspection Technology Co Ltd | Mao Hong
Effective Ownership	80.00%

Note_1_Organization_and_Princi3

Note 1 - Organization and Principal Activities: Company's Major Subsidiaries (Details)	9 Months Ended
	Feb. 28, 2015	Sep. 11, 2014
Shanghai Yuzhong Financial Information Service Co Ltd
Domicile and Date of Incorporation	The PRC July 16, 2014
Effective Ownership	49.80%
Principal Activities	Investment holding company
Shanghai Yuguang Automobile Inspection Technology Co Ltd
Domicile and Date of Incorporation	The PRC July 17, 2014
Effective Ownership	20.00%
Principal Activities	Investment holding company
Redtone Telecommunication China Limited
Domicile and Date of Incorporation	Hong Kong May 26, 2005
Effective Ownership	100.00%
Principal Activities	Investment holding
Redtone Telecommunication Shanghai Limited
Domicile and Date of Incorporation	The PRC July, 26, 2005
Effective Ownership	100.00%
Principal Activities	Provides technical support services to group companies
Shanghai Hongsheng Net Telecommunications Company Limited
Domicile and Date of Incorporation	The PRC November 29, 2006
Effective Ownership	100.00%
Principal Activities	Marketing and distribution of discounted call services to PRC consumer market
Shanghai Huitong Telecommunication Company Limited
Domicile and Date of Incorporation	The PRC March, 26, 2007
Effective Ownership	100.00%
Principal Activities	Marketing and distribution of IP call and discounted call services in the PRC
Shanghai Huitong Telecommunication Company Limited | Shanghai Yuzhong Financial Information Service Co Ltd
Effective Ownership	49.80%
Shanghai Huitong Telecommunication Company Limited | Shanghai Yuguang Automobile Inspection Technology Co Ltd
Effective Ownership	20.00%
Shanghai Jiamao E Commerce Company Limited
Domicile and Date of Incorporation	The PRC March 21, 2008
Effective Ownership	100.00%
Principal Activities	Marketing and distribution of products on the internet
Nantong Jiatong Investment Consultant Co Ltd
Domicile and Date of Incorporation	The PRC May 17, 2011
Effective Ownership	100.00%
Principal Activities	Investment holding
Shanghai Qian Yue Business Administration Co Ltd
Domicile and Date of Incorporation	The PRC December 12, 2008
Effective Ownership	100.00%
Principal Activities	Provision of prepaid shopping-card services in the PRC
Shanghai Xin Chang Information Technology Company Limited
Domicile and Date of Incorporation	The PRC January 13, 2006
Effective Ownership	56.00%
Principal Activities	Marketing and distribution of IP call and discounted call services in the PRC
Taizhou Haitai Motor Vehicle Inspection Co, Ltd.
Domicile and Date of Incorporation	The PRC October 31, 2013
Effective Ownership	10.20%	51.00%
Principal Activities	Inspection of motor vehicle

Note_3_Summary_of_Significant_3

Note 3 - Summary of Significant Accounting Policies: (d) Earnings Per Share (Details)	9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Details
Dilutive securities outstanding	0	0

Note_3_Summary_of_Significant_4

Note 3 - Summary of Significant Accounting Policies: (e) Foreign Currency Translation: Foreign Currency Disclosure (Details)	Feb. 28, 2015	31-May-14	Feb. 28, 2014
China, Yuan Renminbi
Foreign Currency Exchange Rate, Translation	0.1627	0.1621	0.1633
China, Yuan Renminbi | Average Yearly
Foreign Currency Exchange Rate, Translation	0.1625	0.1629	0.163
Hong Kong, Dollars
Foreign Currency Exchange Rate, Translation	0.129	0.129	0.1289
Hong Kong, Dollars | Average Yearly
Foreign Currency Exchange Rate, Translation	0.129	0.129	0.1289

Note_4_Disposal_of_Subsidiarie2

Note 4 - Disposal of Subsidiaries and Discontinued Operation (Details) (USD $)	9 Months Ended
	Feb. 28, 2015	Jul. 25, 2014	31-May-14
Gain on disposal of subsidiaries	$1,010,987
Guotai Investment Holdings Limited
Consideration received	4,540,000
Shanghai Qian Yue Business Administration Co Ltd
Consideration received	4,565,936
Less: Net assets of QBA	-2,944,563	-2,944,562	-1,656,150
Less: Goodwill arising in the acquisition of QBA	-610,386
Gain on disposal of subsidiaries	$1,010,987

Note_4_Disposal_of_Subsidiarie3

Note 4 - Disposal of Subsidiaries and Discontinued Operation: QBA's Assets, Liabilities, and Results (Details) (USD $)	3 Months Ended	9 Months Ended		2 Months Ended
	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014	Jul. 25, 2014	31-May-14	31-May-13
Assets
Cash and Cash Equivalents	$1,706,112		$1,706,112		$1,687,392	$1,797,240
Assets held for sale					1,713,011
Liabilities
Liabilities related to assets held for sale					56,861
Net loss	-76,666	-104,018	-229,892
Shanghai Qian Yue Business Administration Co Ltd
Assets
Cash and Cash Equivalents				2,969,661	1,687,392
Inventories				6,708	6,669
Accounts Receivable				525	522
Other receivables and deposits				8,892	8,841
Property, Plant and Equipment, net				5,937	9,587
Assets held for sale				2,991,723	1,713,011
Liabilities
Accounts Payable				29,699	32,701
Accrued expenses and other payables				17,462	24,160
Liabilities related to assets held for sale				47,161	56,861
Net assets of QBA		2,944,563		2,944,562	1,656,150
Revenue			208	3
Other Income			74,895	164
Service costs			-57	0
Personnel cost			-120,695	-93,580
Depreciation expense			-146,331	-3,689
Administrative and other expenses			-37,912	-6,916
Net loss			($229,892)	($104,018)

Note_5_Acquisition_of_A_Subsid2

Note 5 - Acquisition of A Subsidiary (Details) (Shanghai Xin Chang Information Technology Company Limited, USD $)	Feb. 28, 2015	Jan. 22, 2014
Effective Ownership	56.00%
Tranch 1
Consideration received		$245,655
Tranch 2
Consideration received		$489,900

Note_5_Acquisition_of_A_Subsid3

Note 5 - Acquisition of A Subsidiary: Operating Results of Xin Chang (Details) (USD $)	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Revenue	$1,536,250	$1,460,619	$6,097,699	$4,365,689
Other income and gains	20,125	12,900	151,229	110,350
Service costs	1,267,397	630,544	4,858,845	1,862,764
Depreciation expense	133,622	121,473	391,596	361,071
Amortization expense	33,240	31,030	106,455	89,240
Administrative and other expenses	228,194	199,469	722,580	492,927
Net loss		-76,666	-104,018	-229,892
Shanghai Xin Chang Information Technology Company Limited
Revenue			1,290,312	216,474
Other income and gains			5,133	0
Service costs			-1,137,258	-233,916
Personnel cost			-109,367	-23,811
Depreciation expense			-18,251	0
Amortization expense			-16,343	0
Administrative and other expenses			-120,814	-20,200
Net loss			($106,588)	($61,453)

Note_6_Cash_Cash_Equivalents_S1

Note 6 - Cash & Cash Equivalents: Schedule of Cash and Cash Equivalents (Details) (USD $)	Feb. 28, 2015	31-May-14	Feb. 28, 2014
Details
Cash and bank	$408,763	$494,552
Time deposits	4,582,008	2,496,724
Total	$4,990,771	$2,991,276	$5,502,271

Note_7_Other_Receivables_and_D2

Note 7 - Other Receivables and Deposits: Schedule of Other Receivables and Deposits (Details) (USD $)	Feb. 28, 2015	31-May-14
Details
Deposits	$0	$119,400
Temporary Advance	381,223	810,625
Other receivables	317,674	153,244
Total	$698,897	$1,083,269

Note_8_Property_Plant_and_Equi2

Note 8 - Property, Plant and Equipment: Property, Plant and Equipment (Details) (USD $)	Feb. 28, 2015	31-May-14
At cost:
Property, Plant and Equipment, Gross	$5,748,834	$5,623,158
Less: Accumulated depreciation	-4,462,019	-4,171,264
Property, Plant and Equipment, Net, Total	1,286,815	1,451,894
Computer Equipment
At cost:
Property, Plant and Equipment, Gross	70,490	102,023
Technology Equipment
At cost:
Property, Plant and Equipment, Gross	5,460,732	5,297,796
Furniture and Fixtures
At cost:
Property, Plant and Equipment, Gross	58,420	61,887
Vehicles
At cost:
Property, Plant and Equipment, Gross	126,456	126,133
Leasehold Improvements
At cost:
Property, Plant and Equipment, Gross	$32,736	$35,319

Note_8_Property_Plant_and_Equi3

Note 8 - Property, Plant and Equipment (Details) (USD $)	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Depreciation expense attributable to continuing operations	$133,622	$121,473	$391,596	$361,071
Depreciation expense	133,622	121,473	391,596	361,071
Discontinued Operations
Depreciation expense attributable to continuing operations			3,689	146,331
Depreciation expense			$3,689	$146,331

Note_9_Intangible_Assets_Sched1

Note 9 - Intangible Assets: Schedule of Intangible Assets (Details) (USD $)	Feb. 28, 2015	31-May-14
At cost:
Operating concession	$435,375	$438,670
Customer Base	81,270	81,450
IT Licenses and Software	2,281,079	2,276,992
Intangible Assets, Gross (Excluding Goodwill), Total	2,797,724	2,797,112
Less: Accumulated amortization	-963,707	-857,499
Intangible assets, net	$1,834,017	$1,939,613

Note_9_Intangible_Assets_Detai

Note 9 - Intangible Assets (Details) (USD $)	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Amortization of Intangible Assets, Total	$33,240	$31,030	$106,455	$89,240
Discontinued Operations
Amortization of Intangible Assets, Total			$0	$0

Note_10_Goodwill_Schedule_of_G1

Note 10 - Goodwill: Schedule of Goodwill (Details) (USD $)	Feb. 28, 2015	31-May-14
Details
Arising from the acquisition of QBA	$0	$610,386

Note_11_Amount_Due_From_to_Rel2

Note 11 - Amount Due From (to) Related Companies: Due From Related Party (Details) (USD $)	Feb. 28, 2015	31-May-14
Amount due from a related company	$3,303,193	$3,272,950
Amount due to a related company	154,371	148,791
REDtone Technology Sdn. Bhd.
Amount due from a related company	3,303,193	3,272,950
Redtone Telecommunications Sdn Bhd
Amount due to a related company	$154,371	$148,791

Note_12_Accrued_Expenses_and_O2

Note 12 - Accrued Expenses and Other Payables: Schedule of Accrued Expenses and Other Payables (Details) (USD $)	Feb. 28, 2015	31-May-14
Details
Accrued expenses	$295,896	$345,869
Other payables	737,004	236,371
Total	$1,032,900	$582,240

Note_14_Taxes_Payable_Schedule1

Note 14 - Taxes Payable: Schedule of Taxes Payable (Details) (USD $)	Feb. 28, 2015	31-May-14
Details
Income tax payable	$474,858	$456,922
Business tax payable	152,164	214,203
Total	$627,022	$671,125

Note_14_Taxes_Payable_Details

Note 14 - Taxes Payable (Details) (CHINA)	9 Months Ended
	Feb. 28, 2015
Business sales tax rate	16.50%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	25.00%
Minimum
Business sales tax rate	3.00%
Maximum
Business sales tax rate	5.00%

Note_15_Income_Tax_Income_Sche2

Note 15 - Income Tax Income: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $)	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Details
Current - PRC income tax and Hong Kong			$16,869	$236,985
Deferred income tax income			-4,797	-11,110
Total	$19,460	$154,282	$12,072	$225,875

Note_15_Income_Tax_Income_Sche3

Note 15 - Income Tax Income: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $)	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Details
(Loss)/income before provision for income taxes - continuing operations	($356,408)	$260,274	($457,306)	$1,109,319
Expected PRC income tax expense at statutory tax rate of 25%			-114,326	277,330
Different tax rate for PRC/Hong Kong local authority			7,586	15,233
Expenses not deductible for tax			13,933	4,616
Utilization of tax loss brought forward			-32,677	-165,108
Tax loss not provided for deferred tax			137,556	93,804
Total	$19,460	$154,282	$12,072	$225,875

Note_15_Income_Tax_Income_Deta

Note 15 - Income Tax Income (Details) (CHINA)	9 Months Ended
	Feb. 28, 2015
CHINA
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	25.00%
Hong Kong profits tax applicable to Hong King subsidiaries	16.50%

Note_16_Variable_Interest_Enti2

Note 16 - Variable Interest Entities ("vies"): Schedule of Consolidated VIEs (Details) (USD $)	3 Months Ended		9 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014	31-May-14	31-May-13
Assets
Cash and cash equivalents					$4,678,668	$5,479,091
Inventories	50,626		50,626		3,974
Tax recoverable	23,432		23,432		23,372
Other receivables and deposits	698,897		698,897		1,083,269
Goodwill	0		0		610,386
Property, plant and equipment, net	1,286,815		1,286,815		1,451,894
Intangible asset, net	1,834,017		1,834,017		1,939,613
Interest in associates	1,722,666		1,722,666
Liabilities
Accounts payable	1,246,145		1,246,145		2,798,373
Accrued expenses and other payables	1,032,900		1,032,900		582,240
Total current liabilities	4,739,821		4,739,821		5,001,183
Revenue	1,536,250	1,460,619	6,097,699	4,365,689
Other income and gains	20,125	12,900	151,229	110,350
Service costs (Not including service costs payable to intra-group companies)	1,267,397	630,544	4,858,845	1,862,764
Personnel cost	250,330	230,729	626,758	560,718
Depreciation expense	133,622	121,473	391,596	361,071
Amortization expense	33,240	31,030	106,455	89,240
Administrative and other expenses	228,194	199,469	722,580	492,927
Income tax income/(provision for income taxes)	19,460	154,282	12,072	225,875
Net Income	20,575	27,035	46,904	27,035
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure
Assets
Cash and cash equivalents	165,454		165,454		1,888,407
Inventories	50,626		50,626		10,643
Accounts receivable	2,217,873		2,217,873		2,899,498
Tax recoverable	23,432		23,432		23,372
Other receivables and deposits	669,433		669,433		1,037,508
Goodwill	0		0		617,454
Property, plant and equipment, net	196,771		196,771		108,371
Intangible asset, net	473,188		473,188		495,020
Interest in associates	1,722,666		1,722,666		0
Total assets (not include amount due from intra-group companies)	5,519,443		5,519,443		7,080,273
Liabilities
Deferred income	1,715,593		1,715,593		779,960
Accounts payable	1,225,198		1,225,198		2,810,592
Accrued expenses and other payables	1,306,648		1,306,648		452,527
Taxes payables	27,531		27,531		68,484
Total current liabilities	4,274,970		4,274,970		4,111,563
Revenue			5,924,714	4,093,086
Other income and gains			976,254	34,397
Service costs (Not including service costs payable to intra-group companies)			-4,846,205	-1,852,309
Personnel cost			-426,808	-290,799
Depreciation expense			-35,467	-550,068
Amortization expense			-23,125	-165,056
Administrative and other expenses			-394,402	-37,590
Income before provision for income taxes (Not including service costs payable to other intra-group companies)			1,174,961	1,231,661
Income tax income/(provision for income taxes)			-16,869	-17,032
Net Income			$1,158,092	$1,214,629