XT Energy (XTEG) 10-Q 22 Jun 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Apr. 30, 2015	Jun. 15, 2015
Document Information [Line Items]
Entity Registrant Name	XIANGTIAN (USA) AIR POWER CO., LTD.
Document Type	10-Q
Document Period End Date	Apr. 30, 2015
Amendment Flag	false
Entity Central Index Key	1,472,468
Current Fiscal Year End Date	--07-31
Entity Common Stock, Shares Outstanding		531,042,000
Entity Filer Category	Smaller Reporting Company
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Apr. 30, 2015	Jul. 31, 2014
Current assets
Cash and cash equivalence	$ 491,657	$ 556,788
Accounts receivable	806,218	0
Other receivables	350,283	23,791
Advances to suppliers	5,523,978	7,490,564
Due from related parties	403,109	0
Inventory	2,175,714	1,781,653
Deferred tax asset	298,171	111,844
Other current asset	3,847,728	1,146,785
Total current assets	13,896,858	11,111,425
Non-current assets
Property, plant and equipment, net	7,793,240	6,779,256
Deposit for property, plant and equipment	90,941	1,590,581
Total non-current assets	7,884,181	8,369,837
Total assets	21,781,039	19,481,262
Current liabilities
Accounts payable and accrued liabilities	2,573,237	355,861
Amount due to shareholders	18,978	18,934
Capital lease interest payable to related parties	172,611	52,542
Capital lease obligations - current	63,248	31,022
Amount due to director	417,776	430,928
Advances from related parties	690,316	3,027,605
Advance from customers	264,510	120,649
Billings in excess of costs	6,663,850	3,847,085
Total current liabilities	10,864,526	7,884,626
Non-current liabilities
Capital lease obligations - non-current	2,699,814	2,718,106
Total non-current liabilities	2,699,814	2,718,106
Total liabilities	$ 13,564,340	$ 10,602,732
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued and outstanding		$ 0
Common stock: $0.001 par value, 1,000,000,000 shares authorized, 531,042,000 shares issued and outstanding as of April 30, 2015 and July 31, 2014	$ 531,042	531,042
Additional paid-in capital	9,206,175	9,201,675
Deficit accumulated	(1,553,110)	(862,211)
Accumulated other comprehensive gain	32,592	8,024
Total stockholders' equity	8,216,699	8,878,530
Total liabilities and stockholders' equity	$ 21,781,039	$ 19,481,262

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2015	Jul. 31, 2014
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	531,042,000	531,042,000
Common stock, shares outstanding	531,042,000	531,042,000

Condensed Consolidated Statemen

Condensed Consolidated Statement of Operations and Comprehensive Loss - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014
Revenue	$ 1,133,522	$ 0	$ 1,133,522	$ 0
Cost of sales	938,674	$ 0	938,674	$ 0
Sales Tax	3,117		3,117
Gross profit	191,731	$ 0	191,731	$ 0
Operating expenses:
Selling expenses	5,731	0	16,391	0
General and administrative expenses	187,067	153,049	918,378	366,244
Loss from operations	192,798	153,049	934,769	366,244
Net gain (loss) from operations	(1,067)	(153,049)	(743,038)	(366,244)
Other (expense) income:
Interest (expense) income	(44,178)	(200)	(126,879)	383
Other expenses	0	0	(90)	0
Foreign exchange gain (loss)	491	0	(12)	0
Total other (expense) income, net	(43,687)	(200)	(126,981)	383
Net loss before taxes	(44,754)	(153,249)	(870,019)	(365,861)
Income tax benefit	20,548	27,857	179,120	38,261
Net loss	(24,206)	(125,392)	(690,899)	(327,600)
Foreign currency translation adjustment	68,662	(72,225)	24,568	(59,981)
Comprehensive gain (loss)	$ 44,456	$ (197,617)	$ (666,331)	$ (387,581)
Net loss per common share - basic and diluted	$ 0	$ 0	$ 0	$ 0
Weighted average number of common shares outstanding - basic and diluted	531,042,000	258,000,000	531,042,000	207,633,700

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Cash flows from operating activities:
Net loss	$ (690,899)	$ (327,600)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	310,560	0
Deferred tax asset	(185,177)	(38,261)
Rent contributed by shareholders as paid-in capital	4,500	4,500
Changes in operating assets and liabilities:
Accounts receivable	(808,753)	0
Other receivables	(327,150)	(118,931)
Prepayment	2,089,024	0
Inventory	(367,649)	0
Due from related party	(404,376)	(2,289)
Other current asset	(2,713,042)	0
Accounts payable and accrued liabilities	2,265,143	(6,335,552)
Billings in excess of costs	2,765,916	0
Other payables and tax payables	277,548	13,035
Advance from customers	142,441	596,717
Capital lease interest payable to related parties	119,631	0
Amount due to related parties	(2,336,613)	0
Net cash provided by (used in) operating activities	141,104	(6,208,381)
Cash flows from investing activities:
Purchase of property and equipment	(64,505)	(3,568,514)
Net cash used in investing activities	(64,505)	(3,568,514)
Cash flows from financing activities:
Repayment of advances from related parties	0	1,969,738
Advances from director	(13,031)	14,974
Capital contribution from shareholders	0	6,413,031
Net cash (used in)/provided by financing activities	(13,031)	8,397,743
Effect of exchange rate change on cash	(128,699)	122,618
Net change in cash and cash equivalents	(65,131)	(1,256,535)
Cash and cash equivalents - beginning of period	556,788	1,640,007
Cash and cash equivalents - end of period	$ 491,657	$ 383,472

NATURE OF OPERATIONS

NATURE OF OPERATIONS	9 Months Ended
	Apr. 30, 2015
NATURE OF OPERATIONS
Nature of Operations [Text Block]	NOTE 1 - NATURE OF OPERATIONS Xiangtian (USA) Air Power Co., Ltd. (the “Company”) was incorporated in the State of Delaware on September 2, 2008 as Goa Sweet Tours Ltd. The Company was originally formed to provide personalized concierge tour packages to tourists who visit the State of Goa, India. On April 17, 2012, the Company entered into Share Purchase Agreements, by and among, Luck Sky International Investment Holdings Limited (“Luck Sky”), an entity owned and controlled by Zhou Deng Rong, and certain of our former stockholders who owned, in the aggregate, 7,200,000 90 235,000 On May 25, 2012, the Company formed a wholly-owned subsidiary corporation under the laws of the State of Delaware called Xiangtian (USA) Air Power Co., Ltd. ("Merger Sub"). Effective as of May 29, 2012, Merger Sub was merged with and into the Company. As a result of the merger, the Company’s name was changed to “Xiangtian (USA) Air Power Co., Ltd.” Prior to the merger, Merger Sub had no liabilities and nominal assets and, as a result of the merger, the separate existence of the Merger Sub ceased. The Company was the surviving corporation in the merger and, except for the name change provided for in the Agreement and Plan of Merger, there was no change in the directors, officers, capital structure or business of the Company. Merger with LuckSky (Hong Kong) Shares Limited On September 5, 2013, the Company entered into a business combination by means of merger of LuckSky (Hong Kong) Shares Limited (“HK Shares”), a Hong Kong corporation, for 250,000,000 250,000,000 250,000,000 The Company has submitted the application form to relevant government department in Hong Kong to cancel HK Shares and expects such cancellation to be effective before July 2015. Since the merger was between related parties, the interest in the entity was recorded at historical cost. Acquisition of Sanhe City Lucksky Electrical Engineering Co., Ltd. On July 25, 2014, Luck Sky (Shen Zhen) Aerodynamic Electricity Limited (“Luck Sky Shen Zhen”), a corporation incorporated under the laws of the People Republic of China (“PRC”), an indirect wholly-owned subsidiary; Sanhe City Lucksky Electrical Engineering Co., Ltd. (“Sanhe”), a corporation incorporated under the laws of the PRC; and Mr. Zhou Jian and Mr. Zhou Deng Rong, the owners of 97 3 Simultaneously, the Company entered into a common stock purchase agreement with Zhou Jian and Zhou Deng Rong, the owners of 97% and 3%, respectively, of Sanhe, in consideration for the execution of the VIE Agreements and the acquisition of Sanhe. Pursuant to the Stock Purchase Agreement, the Company issued Zhou Jian and Zhou Deng Rong 264,850,740 8,191,260 51.4

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Apr. 30, 2015
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s consolidated financial statements are expressed in U.S. dollars. The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) applicable to interim financial information and the requirements of Form 10-Q and Rule 8-03 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosure required by accounting principles generally accepted in the United States of America for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. These interim financial statements should be read in conjunction with the audited financial statements for the year ended July 31, 2014, as not all disclosures required by generally accepted accounting principles for annual financial statements are presented. The interim financial statements follow the same accounting policies and methods of computations as the audited financial statements for the year ended July 31, 2014. These interim financial statements should be read in conjunction with the audited financial statements for the year ended July 31, 2014, as not all disclosures required by generally accepted accounting principles for annual financial statements are presented. The interim financial statements follow the same accounting policies and methods of computations as the audited financial statements for the year ended July 31, 2014. Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net income or losses. The consolidated financial statements include the accounts of the Company, its subsidiaries and VIE for which it is deemed the primary beneficiary. All significant inter-company accounts and transactions have been eliminated in consolidation. The Company evaluates the need to consolidate its VIE in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The VIE agreement was not consummated until July 25, 2014, however, the purpose and design of the establishment of VIE, Sanhe, was to be consolidated under the Company through common control. ASC 810-10-25-38F states that a reporting entity’s involvement in the design of a VIE may indicate that the reporting entity had the opportunity and the incentive to establish arrangements that result in the reporting entity being the variable interest holder with the power to direct the activities that most significantly impact the VIE’s economic performance. As both the Company and the acquired VIE, Sanhe, are under the common control of Zhou Dengrong and Zhou Jian immediately before and after the acquisition, this transaction was accounted for as a merger under common control, using merger accounting as if the merger had been consummated at the beginning of the earliest period presented, and no gain or loss was recognized. All the assets and liabilities of the VIE, Sanhe, are recorded at carrying value. Hence, Sanhe was consolidated under the Company since its inception due to the purpose and design of its establishment. April 30, 2015 July 31, 2014 Total assets $ 21,401,700 $ 17,666,510 Total liabilities 12,621,604 8,821,079 For the nine For the nine months Ended ended April 30, 2015 April 30, 2014 Net loss $ 559,947 $ 327,085 The Company applies the provisions of ASC Subtopic 820-10, “Fair Value Measurements”, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. 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. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ⋅ Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ⋅ Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ⋅ Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. There were no assets or liabilities measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of April 30, 2015 and July 31, 2014 . The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Inventory is stated at the lower of cost or market. Cost is principally determined using the weighted average basis. Construction costs incurred on contracts are included in inventories which consist of raw materials, accessory parts, and contracts work in progress. Costs in excess of billings represent unbilled amounts earned and reimbursable under contracts. These amounts become billable according to the contract terms, which usually consider the passage of time, achievement of milestones or completion of the project. Generally, such unbilled amounts will be billed and collected over the next twelve months. There was no cost in excess of billings for the periods ended April 30, 2015 and July 31, 2014. Billings in Excess of Costs: Billings in excess of costs is comprised of cash collected from customers and billings to customers on contracts in advance of work performed, including advance payments negotiated as a contract condition. Generally, unearned project-related costs will be earned over the next twelve months. Property and equipment Property and equipment are stated at cost less accumulated depreciation and impairment losses. Gains or losses on dispositions of property and equipment are included in operating income (loss). Major additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred. Depreciation and amortization are provided over the estimated useful lives of the assets using the straight-line method from the time the assets are placed in service. Classification Estimated useful life Machinery equipment 5 10 Computer and office equipment 3 Vehicle 5 Property under capital lease 20 Sales of power generation system in conjunction of system installation are recognized under accounting for construction-type contracts, using the completed contract method because reliable estimates are not available for the costs and efforts necessary to complete the construction. Accordingly, revenue is recognized upon the completion of the construction, provided persuasive evidence of an arrangement exists, title and risk of loss has transferred, the fee is fixed and determinable, and collection is reasonably assured. We provide for any loss that we expect to incur on these contracts when that loss is probable. The Company generally provides limited warranties for work performed under its contracts. The warranty periods typically extend for a limited duration following substantial completion of the Company's work on a project. At the time a sale is recognized, we record estimated future warranty costs. Such estimated costs for warranties are included in the individual project cost estimates for purposes of accounting for long-term contracts. The warranty cost is estimated based on our experience with the type of work and any known risks relative to the project and was not material during the periods ended April 30, 2015 and 2014. No right of return exists on sales of equipment. Replacement part returns are estimable and accrued at the time a sale is recognized. The Company is subject to VAT at a rate of 17 The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. No significant penalties or interest relating to income taxes have been incurred during the period from July 8, 2013 (inception) to December 31, 2013. US GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 220 “Reporting Comprehensive Income”, and establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general purpose financial statements. The Company’s functional currency is Chinese Renminbi (“RMB”) as substantially all of the Company’s PRC subsidiaries’ operations use this denomination. The consolidated financial statements are presented in U.S. dollars. Foreign denominated monetary assets and liabilities are translated into their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non-monetary assets and liabilities are translated at the exchange rates prevailing at the transaction date. Revenues and expenses are translated at average rates of exchange during the year. Gains or losses resulting from foreign currency transactions are included in results of operations. For the purpose of presenting these financial statements of subsidiaries in PRC, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, which is 6.2018 6.2164 6.1824 6.1168 For the purpose of presenting these financial statements of subsidiaries in Hong Kong, PRC, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, which is 7.7513 7.7497 7.7540 7.7556 Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted earnings per share gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method. Earnings per share exclude all potential dilutive shares of common stock if their effect is anti-dilutive. There were no potential dilutive securities at April 30, 2015 or April 30 , 2014. Certain comparative amounts for the prior period have been reclassified to conform to current period presentations. Such reclassifications had no effect on net income or shareholders’ equity. In February 2015, FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The new consolidation standard changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a VIE, and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The guidance is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2015. Early adoption is allowed, including early adoption in an interim period. A reporting entity may apply a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption or may apply the amendments retrospectively. The Company is currently assessing the impact of the adoption of this guidance on the consolidated financial statements. In August 2014, the Financial Accounting Standards Board issued ASU No. 2014-15, Presentation of Financial Statements— Going Concern (Subtopic 205-40). This standard is intended to define management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments contained in this ASU apply to all companies and not-for-profit organizations. The amendments are effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The Company is currently assessing this ASU’s impact on the Company’s consolidated results of operations and financial condition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations.

GOING CONCERN

GOING CONCERN	9 Months Ended
	Apr. 30, 2015
GOING CONCERN
GOING CONCERN	NOTE 3 - GOING CONCERN The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses since its inception resulting in an accumulated deficit of $ 1,553,110 The Company expects to finance operations primarily through cash flow from revenue and capital contributions from principal shareholders. In the event that we require additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, our principal shareholders have indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on our ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The financial statements do not include any adjustments that might result from the outcome of this- uncertainty.

INVENTORIES

INVENTORIES	9 Months Ended
	Apr. 30, 2015
INVENTORIES
INVENTORIES	NOTE 4 – INVENTORIES April 30, July 31, 2015 2014 Raw materials $ 295,539 $ 115,839 Accessory parts 899,252 635,708 Contracts work in process 980,923 1,030,106 Total $ 2,175,714 $1,781,653

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	9 Months Ended
	Apr. 30, 2015
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT	NOTE 5 - PROPERTY, PLANT AND EQUIPMENT April 30, July 31, 2015 2014 Machinery equipment $ 5,281,800 $ 3,997,506 Computer and office equipment 56,630 59,316 Vehicle 74,205 38,558 Property under capital lease 2,763,062 2,756,573 Total property, plant and equipment 8,175,697 6,851,953 Less: accumulated depreciation (382,457) (72,697) Total $ 7,793,240 $ 6,779,256 Total depreciation expenses for the nine months ended April 30, 2015 and 2014 were $ 310,560 0 189,241 0 121,321 0

BILLINGS IN EXCESS OF COSTS

BILLINGS IN EXCESS OF COSTS	9 Months Ended
	Apr. 30, 2015
BILLINGS IN EXCESS OF COSTS
BILLINGS IN EXCESS OF COSTS	NOTE 6 – BILLINGS IN EXCESS OF COSTS April 30, 2015 July 31, 2014 Costs incurred on uncompleted contracts $ 16,716,459 $ 7,863,873 Billings to date (23,380,309) (11,710,958) $ (6,663,850) $ (3,847,085) Included in the accompanying balance sheets as follows: Costs in excess of billings on uncompleted contracts $ - $ - Billings on uncompleted contracts in excess of costs (6,663,850) (3,847,085) $ (6,663,850) $ (3,847,085)

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Apr. 30, 2015
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 7 - RELATED PARTY TRANSACTIONS Due from related parties On April 25, 2015, Sanhe entered into a loan agreement with Xiangtian Kelitai, Yanjiao Branch, a division of LuckSky Group, which is owned by Zhou Deng Rong, former CEO and Sanhe’s former general manager and former majority shareholder of the Company, with a total amount of $ 507,917 3,150,000 December 31, 2015 5 403,109 Due to related parties On July 25, 2014, prior to the Acquisition, Sanhe and Luck Sky Shen Zhen and Sanhe’s shareholders entered into a series of VIE Agreements, pursuant to which Sanhe became Luck Sky Shen Zhen’s contractually controlled affiliate. The VIE Agreements include the Framework Agreement on Business Cooperation, the Exclusive Management, Consulting and Training and Technical Services Agreement, the Exclusive Option Agreement, the Equity Pledge Agreement, the Know-How Sub-License Agreement and the Power-of-Attorney. The purpose and effect of the VIE Agreements is to provide Luck Sky Shen Zhen (the Company’s indirect wholly-owned subsidiary) with all of the management and control of Sanhe and all of its net income. While Luck Sky Shen Zhen does not actually own at present any of the equity and shares in Sanhe, the purpose and effect of the VIE Agreements is to instill in Luck Sky Shen Zhen total management and voting control of Sanhe for all material purposes. The use of VIE agreements is a common structure used to acquire PRC corporations, particularly in certain industries in which foreign investment is restricted or forbidden by the PRC government. On July 25, 2014, the Company entered into the Stock Purchase Agreement with Zhou Jian and Zhou Deng Rong, the owners of 97 3 264,850,740 8,191,260 51.4 On July 25, 2014, Luck Sky Shen Zhen obtained an exclusive, worldwide, royalty free license from Zhou Deng Rong and Zhou Jian (his son) and a second exclusive, worldwide royalty free license from LuckSky Group to an aggregate of 48 Chinese patents and related know how and trade secrets, including the technology underlying 13 patent applications (the “Technology”). The Technology represents all of the patents, patent applications and related know how and trade secrets owned by the licensors with respect to PV installations and the air energy storage power generation technology as applied to commercial and residential buildings, but not wind towers. On July 25, 2014, Luck Sky Shen Zhen granted Sanhe an exclusive sublicense with respect to the use of the Technology for commercial and residential buildings, but not for other uses, including wind towers, vehicles and trains, which sublicense also provides for a royalty payment to Luck Sky Shen Zhen equal of five percent of Sanhe’s revenues. The royalty payment was deferred. In May 2014, Sanhe entered into an agreement with Kelitai, to purchase some of Keizai’s fixed assets for the use in its own production. The total amount for the fixed assets and inventory was $ 1,261,872 7,844,300 0 1,235,667 On April 1, 2014, LuckSky Group loaned Sanhe $ 483,830 3,000,000 December 31, 2014 2,000,000 1,000,000 Prior to the incorporation of Sanhe, Kelitai Air Powered Machinery Co., Ltd. (“Kelitai”), a subsidiary of LuckSky Group, an entity owned by Zhou Deng Rong, our former CEO and Sanhe’s former general manager and former majority shareholder of the Company, executed various purchase agreements (the “Agreements”) with Beijing Hengruier Machinery Company Limited (“Hengruier”) and made certain prepayments on behalf of the Company. On July 15, 2013, Kelitai, Hengruier and the Company executed a tripartite agreement to transfer the rights and obligations of the Agreements to the Company. As of April 30, 2015, Kelitai has paid $ 1,242,198 0 1,242,198 On July 18, 2013, Sanhe borrowed $ 1,242,198 7,722,000 December 31, 2014 5,233,000 Sanhe leases its principal office, factory and dormitory from LuckSky Group in Sanhe City, Hebei Province. LuckSky Group is owned by Zhou Deng Rong, our former CEO and Zhou Jian, our General Manager and Chairman of the Board. The space in the office, factory and dormitory being leased are 1296, 5160 and 1200 square meters, respectively. The office and factory space are leased for a rent of $ 113,492 697,248 21,095 129,600 April 30, 2024 133,324 33,253 On April 28, 2012, Zhou Jian obtained the right of usage of 44.3 18 years and 8 months 5,617 34,510 Sanhe also leases a second factory and office in Sanhe City from Sanhe Dong Yi Glass Machine Company Limited, which is owned by Zhou Deng Rong. A portion of this facility is currently used by Sanhe to demonstrate its products but the facility is primarily intended as a backup to the first facility in Sanhe City and/or for expansion. The factory and office are 4,748.96 1,306,500 30 years 172,611 52,542 From time to time, Mr. Zhou Deng Rong prepaid some expenses for the company. April 30, 2015 July 31, 2014 Rental fees: LuckSky Group 133,324 33,253 Sanhe Dong Yi (Capital lease interest payable) $ 172,611 $ 52,542 Purchase Fixed assets: Kelitai $ - $ 1,235,667 Borrowings: LuckSky Group - 1,242,198 Sanhe Dong Yi $ - $ 160,865 Prepaid expenses on behalf of the company: Kelitai - 1,510 Zhou Deng Rong 556,992 354,112 Total $ 862,927 $ 3,080,147 Due to Shareholders Since inception to April 2014, the Company’s shareholders have paid several employees’ salaries on behalf of the Company. As of April 30, 2015 and July 31, 2014, the amount due to shareholders was $ 18,978 18,934 Due to Directors From time to time, the Company receives advances from its directors. As of April 30, 2015 and July 31, 2014, the Company received $ 417,776 430,928

GOVERNMENT CONTRIBUTION PLAN

GOVERNMENT CONTRIBUTION PLAN	9 Months Ended
	Apr. 30, 2015
GOVERNMENT CONTRIBUTION PLAN
GOVERNMENT CONTRIBUTION PLAN	NOTE 8 - GOVERNMENT CONTRIBUTION PLAN The Company participates in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond its monthly contribution. The outstanding amount was $ 54,403 22,098

STATUTORY RESERVE

STATUTORY RESERVE	9 Months Ended
	Apr. 30, 2015
STATUTORY RESERVE
STATUTORY RESERVE	NOTE 9 - STATUTORY RESERVE Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10 50 10 50

CAPITAL STOCK AND EQUITY TRANSA

CAPITAL STOCK AND EQUITY TRANSACTIONS	9 Months Ended
	Apr. 30, 2015
CAPITAL STOCK AND EQUITY TRANSACTIONS
CAPITAL STOCK AND EQUITY TRANSACTIONS	NOTE 10 - CAPITAL STOCK AND EQUITY TRANSACTIONS Common Stock The total number of common shares authorized that may be issued by the Company is 1,000,000,000 0.001 During the period ended July 31, 2009, the Company issued 5,000,000 25,000 3,000,000 30,000 On September 23, 2013, the Company issued 250,000,000 250,000,000 On July 25, 2014, we entered into the Stock Purchase Agreement in connection with the acquisition of Sanhe with Zhou Jian and Zhou Deng Rong, the owners of 97 3 264,850,740 8,191,260 51.4 Preferred Stock The total number of preferred shares authorized that may be issued by the Company is 100,000,000 0.001

INCOME TAXES

INCOME TAXES	9 Months Ended
	Apr. 30, 2015
INCOME TAXES
INCOME TAXES	NOTE 11 - INCOME TAXES United States Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. 34 April 30, 2015 July 31, 2014 Deferred tax assets: Net operating losses $ 224,460 $ 170,552 Total deferred tax assets 224,460 170,552 Less: valuation allowance (224,460) (170,552) Deferred tax assets, net $ - $ - As of April 30, 2015, for U.S. federal income tax reporting purposes, the Company has approximately $ 660,179 Hong Kong The Company’s subsidiaries established in HKSAR are subject to Hong Kong Profits Tax. However, these subsidiaries did not earn any income derived in Hong Kong from its date of incorporation to April 30, 2015, and therefore were not subject to Hong Kong Profits Tax. PRC The Company’s subsidiaries established in PRC are subject to income tax rate of 25 1) Luck Sky Shenzhen As of April 30, 2015, Luck Sky Shenzhen had $ 30,036 7,529 2) Sanhe As of April 30, 2015, Sanhe had $ 901,742 298,171 111,844

COMMITMENTS, CONTINGENCIES, RIS

COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES	9 Months Ended
	Apr. 30, 2015
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES	NOTE 12. COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES Capital Commitments The Company purchased property, plant and equipment which the payment was due within one year. As of April 30, 2015 and July 31, 2014, the Company has a capital commitment of $ 19,508,643 27,777,872 Operation Commitments Remaining 2015 85,997 Year ending July 31, 2016 343,989 Year ending July 31, 2017 343,989 Year ending July 31, 2018 343,989 After 2018 6,191,227 Total $ 7,309,191 Rental expense of the Company for the nine months ended April 30, 2015 and 2014 were $ 258,801 2,943 Credit risk Cash deposits with banks are held in financial institutions in China, which are not federally insured deposit protection. Accordingly, the Company has a concentration of credit risk related to these uninsured bank deposits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk in this area. Contingency On September 23, 2013, Mr. Roy Thomas Phillips, who was then a consultant to the Company and served as the acting CFO of the Company from July 29, 2014 until his resignation on March 29, 2015, obtained 60,000,000 shares of restricted common stock, and two other non-related parties, obtained a total of 7,000,000 shares of restricted common stock, for a total of 67,000,000 shares of restricted common stock from the Company in contemplation of a secondary offering, which was not consummated. The Company has requested that the certificate representing the shares be returned so that the 67,000,000 shares be canceled. The Company has not recorded such 67,000,000 shares as no consideration was received for such shares. The recipients of such shares have agreed to the cancellation of 62,000,000 of such shares, and that they are not the beneficial owners of such 62,000,000 shares. The cancellation of such 62,000,000 shares is pending upon receipt of the actual stock certificate from the recipients. Meanwhile, Mr. Phillips is evaluating the 5,000,000 shares to make an accommodation with respect to such shares, but has made no specific request. The Company has committed to seek the return of the 5,000,000 shares to the fullest extent.

BASIS OF PRESENTATION AND SUM18

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Apr. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s consolidated financial statements are expressed in U.S. dollars.
Use of Estimates and Assumptions	Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.
Interim Financial Statements	Interim Financial Statements The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) applicable to interim financial information and the requirements of Form 10-Q and Rule 8-03 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosure required by accounting principles generally accepted in the United States of America for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. These interim financial statements should be read in conjunction with the audited financial statements for the year ended July 31, 2014, as not all disclosures required by generally accepted accounting principles for annual financial statements are presented. The interim financial statements follow the same accounting policies and methods of computations as the audited financial statements for the year ended July 31, 2014. These interim financial statements should be read in conjunction with the audited financial statements for the year ended July 31, 2014, as not all disclosures required by generally accepted accounting principles for annual financial statements are presented. The interim financial statements follow the same accounting policies and methods of computations as the audited financial statements for the year ended July 31, 2014.
Reclassification	Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net income or losses.
Principle of Consolidation	Principle of Consolidation The consolidated financial statements include the accounts of the Company, its subsidiaries and VIE for which it is deemed the primary beneficiary. All significant inter-company accounts and transactions have been eliminated in consolidation. The Company evaluates the need to consolidate its VIE in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The VIE agreement was not consummated until July 25, 2014, however, the purpose and design of the establishment of VIE, Sanhe, was to be consolidated under the Company through common control. ASC 810-10-25-38F states that a reporting entity’s involvement in the design of a VIE may indicate that the reporting entity had the opportunity and the incentive to establish arrangements that result in the reporting entity being the variable interest holder with the power to direct the activities that most significantly impact the VIE’s economic performance. As both the Company and the acquired VIE, Sanhe, are under the common control of Zhou Dengrong and Zhou Jian immediately before and after the acquisition, this transaction was accounted for as a merger under common control, using merger accounting as if the merger had been consummated at the beginning of the earliest period presented, and no gain or loss was recognized. All the assets and liabilities of the VIE, Sanhe, are recorded at carrying value. Hence, Sanhe was consolidated under the Company since its inception due to the purpose and design of its establishment. April 30, 2015 July 31, 2014 Total assets $ 21,401,700 $ 17,666,510 Total liabilities 12,621,604 8,821,079 For the nine For the nine months Ended ended April 30, 2015 April 30, 2014 Net loss $ 559,947 $ 327,085
Fair Value Measurements	The Company applies the provisions of ASC Subtopic 820-10, “Fair Value Measurements”, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. 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. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ⋅ Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ⋅ Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ⋅ Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. There were no assets or liabilities measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of April 30, 2015 and July 31, 2014 .
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
Inventory	Inventory Inventory is stated at the lower of cost or market. Cost is principally determined using the weighted average basis. Construction costs incurred on contracts are included in inventories which consist of raw materials, accessory parts, and contracts work in progress.
Costs in Excess of Billings	Costs in Excess of Billings: Costs in excess of billings represent unbilled amounts earned and reimbursable under contracts. These amounts become billable according to the contract terms, which usually consider the passage of time, achievement of milestones or completion of the project. Generally, such unbilled amounts will be billed and collected over the next twelve months. There was no cost in excess of billings for the periods ended April 30, 2015 and July 31, 2014.
Billings in Excess of Costs	Billings in Excess of Costs: Billings in excess of costs is comprised of cash collected from customers and billings to customers on contracts in advance of work performed, including advance payments negotiated as a contract condition. Generally, unearned project-related costs will be earned over the next twelve months.
Property and equipment	Property and equipment Property and equipment are stated at cost less accumulated depreciation and impairment losses. Gains or losses on dispositions of property and equipment are included in operating income (loss). Major additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred. Depreciation and amortization are provided over the estimated useful lives of the assets using the straight-line method from the time the assets are placed in service. Classification Estimated useful life Machinery equipment 5 10 Computer and office equipment 3 Vehicle 5 Property under capital lease 20
Revenue Recognition	Revenue Recognition Sales of power generation system in conjunction of system installation are recognized under accounting for construction-type contracts, using the completed contract method because reliable estimates are not available for the costs and efforts necessary to complete the construction. Accordingly, revenue is recognized upon the completion of the construction, provided persuasive evidence of an arrangement exists, title and risk of loss has transferred, the fee is fixed and determinable, and collection is reasonably assured. We provide for any loss that we expect to incur on these contracts when that loss is probable.
Warranty and Returns	Warranty and Returns The Company generally provides limited warranties for work performed under its contracts. The warranty periods typically extend for a limited duration following substantial completion of the Company's work on a project. At the time a sale is recognized, we record estimated future warranty costs. Such estimated costs for warranties are included in the individual project cost estimates for purposes of accounting for long-term contracts. The warranty cost is estimated based on our experience with the type of work and any known risks relative to the project and was not material during the periods ended April 30, 2015 and 2014. No right of return exists on sales of equipment. Replacement part returns are estimable and accrued at the time a sale is recognized.
Value added taxes	Value added taxes The Company is subject to VAT at a rate of 17
Income Taxes	Income Taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. No significant penalties or interest relating to income taxes have been incurred during the period from July 8, 2013 (inception) to December 31, 2013. US GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition.
Comprehensive Loss	Comprehensive Loss The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 220 “Reporting Comprehensive Income”, and establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general purpose financial statements.
Foreign Currency Translation	Foreign Currency Translation The Company’s functional currency is Chinese Renminbi (“RMB”) as substantially all of the Company’s PRC subsidiaries’ operations use this denomination. The consolidated financial statements are presented in U.S. dollars. Foreign denominated monetary assets and liabilities are translated into their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non-monetary assets and liabilities are translated at the exchange rates prevailing at the transaction date. Revenues and expenses are translated at average rates of exchange during the year. Gains or losses resulting from foreign currency transactions are included in results of operations. For the purpose of presenting these financial statements of subsidiaries in PRC, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, which is 6.2018 6.2164 6.1824 6.1168 For the purpose of presenting these financial statements of subsidiaries in Hong Kong, PRC, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, which is 7.7513 7.7497 7.7540 7.7556
Earnings (loss) per Share	Earnings (loss) per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted earnings per share gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method. Earnings per share exclude all potential dilutive shares of common stock if their effect is anti-dilutive. There were no potential dilutive securities at April 30, 2015 or April 30 , 2014.
Reclassification of Comparative Amounts	Reclassification of Comparative Amounts Certain comparative amounts for the prior period have been reclassified to conform to current period presentations. Such reclassifications had no effect on net income or shareholders’ equity.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2015, FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The new consolidation standard changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a VIE, and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The guidance is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2015. Early adoption is allowed, including early adoption in an interim period. A reporting entity may apply a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption or may apply the amendments retrospectively. The Company is currently assessing the impact of the adoption of this guidance on the consolidated financial statements. In August 2014, the Financial Accounting Standards Board issued ASU No. 2014-15, Presentation of Financial Statements— Going Concern (Subtopic 205-40). This standard is intended to define management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments contained in this ASU apply to all companies and not-for-profit organizations. The amendments are effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The Company is currently assessing this ASU’s impact on the Company’s consolidated results of operations and financial condition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations.

BASIS OF PRESENTATION AND SUM19

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Apr. 30, 2015
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	The following financial statement amounts and balances of the VIE, which is established on August 6, 2014, were included in the accompanying consolidated financial statements as of April 30, 2015 and July 31, 2014 and for the nine months ended April 30, 2015 and 2014, respectively: April 30, 2015 July 31, 2014 Total assets $ 21,401,700 $ 17,666,510 Total liabilities 12,621,604 8,821,079 For the nine For the nine months Ended ended April 30, 2015 April 30, 2014 Net loss $ 559,947 $ 327,085
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Estimated useful lives are as follows, taking into account the assets' estimated residual value: Classification Estimated useful life Machinery equipment 5 10 Computer and office equipment 3 Vehicle 5 Property under capital lease 20

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Apr. 30, 2015
Inventory Disclosure [Abstract]
INVENTORIES	Inventories consist of the following: April 30, July 31, 2015 2014 Raw materials $ 295,539 $ 115,839 Accessory parts 899,252 635,708 Contracts work in process 980,923 1,030,106 Total $ 2,175,714 $1,781,653

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	9 Months Ended
	Apr. 30, 2015
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	Property, plant and equipment consist of the following: April 30, July 31, 2015 2014 Machinery equipment $ 5,281,800 $ 3,997,506 Computer and office equipment 56,630 59,316 Vehicle 74,205 38,558 Property under capital lease 2,763,062 2,756,573 Total property, plant and equipment 8,175,697 6,851,953 Less: accumulated depreciation (382,457) (72,697) Total $ 7,793,240 $ 6,779,256

BILLINGS IN EXCESS OF COSTS (Ta

BILLINGS IN EXCESS OF COSTS (Tables)	9 Months Ended
	Apr. 30, 2015
Contractors [Abstract]
BILLINGS IN EXCESS OF COSTS	Billings in excess of costs consist of the following: April 30, 2015 July 31, 2014 Costs incurred on uncompleted contracts $ 16,716,459 $ 7,863,873 Billings to date (23,380,309) (11,710,958) $ (6,663,850) $ (3,847,085) Included in the accompanying balance sheets as follows: Costs in excess of billings on uncompleted contracts $ - $ - Billings on uncompleted contracts in excess of costs (6,663,850) (3,847,085) $ (6,663,850) $ (3,847,085)

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Apr. 30, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	As of April 30, 2015 and July 31, 3014, amounts due to related parties were as follows: April 30, 2015 July 31, 2014 Rental fees: LuckSky Group 133,324 33,253 Sanhe Dong Yi (Capital lease interest payable) $ 172,611 $ 52,542 Purchase Fixed assets: Kelitai $ - $ 1,235,667 Borrowings: LuckSky Group - 1,242,198 Sanhe Dong Yi $ - $ 160,865 Prepaid expenses on behalf of the company: Kelitai - 1,510 Zhou Deng Rong 556,992 354,112 Total $ 862,927 $ 3,080,147

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Apr. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	The cumulative tax effect at the expected rate of 34 April 30, 2015 July 31, 2014 Deferred tax assets: Net operating losses $ 224,460 $ 170,552 Total deferred tax assets 224,460 170,552 Less: valuation allowance (224,460) (170,552) Deferred tax assets, net $ - $ -

COMMITMENTS, CONTINGENCIES, R25

COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES (Tables)	9 Months Ended
	Apr. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES	The total future minimum lease payments under the non-cancellable operating lease with respect to the office and the dormitory as of April 30, 2015 are payable as follows: Remaining 2015 85,997 Year ending July 31, 2016 343,989 Year ending July 31, 2017 343,989 Year ending July 31, 2018 343,989 After 2018 6,191,227 Total $ 7,309,191

NATURE OF OPERATIONS (Details T

NATURE OF OPERATIONS (Details Textual) - USD ($)	Sep. 05, 2013	Sep. 23, 2013	Apr. 30, 2015	Jul. 31, 2014	Jul. 25, 2014	May. 15, 2012
Significant Accounting Policies [Line Items]
Shares issued			531,042,000	531,042,000
Common Stock, Par or Stated Value Per Share			$ 0.001	$ 0.001
Percentage of Common Stock Issued and Outstanding			51.40%
Common Stock [Member]
Significant Accounting Policies [Line Items]
Stock Issued During Period, Shares, Acquisitions		250,000,000
Exchange of Stock for Stock [Member]
Significant Accounting Policies [Line Items]
Stock Issued During Period, Shares, Acquisitions		250,000,000
Lucksky Hong Kong Shares Limited [Member]
Significant Accounting Policies [Line Items]
Stock Issued During Period, Shares, New Issues	250,000,000
Common Stock, Par or Stated Value Per Share		$ 0.001
Luck Sky International Investment Holding Limited [Member]
Significant Accounting Policies [Line Items]
Ownership Percentage						90.00%
Shares issued						7,200,000
Shares Purchased Value						$ 235,000
Mr. Zhou Jian [Member]
Significant Accounting Policies [Line Items]
Equity Method Investment Ownership Percentage					97.00%
Stock Issued During Period, Shares, Acquisitions			264,850,740
Mr. Zhou Deng Rong [Member]
Significant Accounting Policies [Line Items]
Equity Method Investment Ownership Percentage					3.00%
Stock Issued During Period, Shares, Acquisitions			8,191,260

BASIS OF PRESENTATION AND SUM27

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Apr. 30, 2015	Jul. 31, 2014
Condensed Income Statements, Captions [Line Items]
Total assets	$ 21,401,700	$ 17,666,510
Total liabilities	$ 12,621,604	$ 8,821,079

BASIS OF PRESENTATION AND SUM28

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	9 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Variable Interest Entity [Line Items]
Net loss	$ 559,947	$ 327,085

BASIS OF PRESENTATION AND SUM29

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2)	9 Months Ended
	Apr. 30, 2015
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Computer And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	20 years

BASIS OF PRESENTATION AND SUM30

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	Apr. 30, 2015	Jul. 31, 2014	Apr. 30, 2014
Change in Accounting Estimate [Line Items]
Percentage of VAT, Proceeds Received from Customers	17.00%
Foreign Currency Exchange Rate, Translation	7.7513	7.7497
Foreign Currency Weighted Average Exchange Rate, Translation	7.7540		7.7556
Subsidiaries in PRC [Member]
Change in Accounting Estimate [Line Items]
Foreign Currency Exchange Rate, Translation	6.2018	6.2164
Foreign Currency Weighted Average Exchange Rate, Translation	6.1824		6.1168

GOING CONCERN (Details Textual)

GOING CONCERN (Details Textual) - USD ($)	Apr. 30, 2015	Jul. 31, 2014
Schedule Of Collaborative Arrangements And Going Concern Transactions [Line Items]
Accumulated deficit	$ 1,553,110	$ 862,211

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Apr. 30, 2015	Jul. 31, 2014
Inventory [Line Items]
Raw materials	$ 295,539	$ 115,839
Accessory parts	899,252	635,708
Contracts work in process	980,923	1,030,106
Total	$ 2,175,714	$ 1,781,653

PROPERTY, PLANT AND EQUIPMENT33

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Apr. 30, 2015	Jul. 31, 2014
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 8,175,697	$ 6,851,953
Less: accumulated depreciation	(382,457)	(72,697)
Total	7,793,240	6,779,256
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	5,281,800	3,997,506
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	56,630	59,316
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	74,205	38,558
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 2,763,062	$ 2,756,573

PROPERTY, PLANT AND EQUIPMENT34

PROPERTY, PLANT AND EQUIPMENT (Details Textual) - USD ($)	9 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Property, Plant and Equipment [Line Items]
Depreciation	$ 310,560	$ 0
General and Administrative Expense [Member]
Property, Plant and Equipment [Line Items]
Depreciation	121,321	0
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Depreciation	$ 189,241	$ 0

BILLINGS IN EXCESS OF COSTS (De

BILLINGS IN EXCESS OF COSTS (Details) - USD ($)	Apr. 30, 2015	Jul. 31, 2014
Billings In Excess Of Costs [Line Items]
Costs incurred on uncompleted contracts	$ 16,716,459	$ 7,863,873
Billings to date	(23,380,309)	(11,710,958)
Billings in Excess of Cost	(6,663,850)	(3,847,085)
Included in the accompanying balance sheets as follows:
Costs in excess of billings on uncompleted contracts	0	0
Billings on uncompleted contracts in excess of costs	(6,663,850)	(3,847,085)
Billings in Excess of Cost, Current	$ (6,663,850)	$ (3,847,085)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	9 Months Ended	12 Months Ended
	Apr. 30, 2015USD ($)	Jul. 31, 2014USD ($)	Apr. 25, 2015USD ($)	Apr. 25, 2015CNY (¥)	Apr. 30, 2014USD ($)	Apr. 30, 2014CNY (¥)	Jul. 18, 2013USD ($)	Jul. 18, 2013CNY (¥)
Rental fees:
LuckSky Group	$ 172,611	$ 52,542
Prepaid expenses on behalf of the company:
Total	862,927	3,080,147
Kelitai Air Powered Machinery Co Ltd [Member]
Rental fees:
LuckSky Group	133,324	33,253
Purchase Fixed assets:
Payments to Acquire Productive Assets	0	1,235,667
Borrowings:
Short-term Debt	0	1,242,198	$ 507,917	¥ 3,150,000	$ 483,830	¥ 3,000,000	$ 1,242,198	¥ 7,722,000
Prepaid expenses on behalf of the company:
Prepaid Expense, Current	0	1,510
Sanhe Dong Yi Glass Machine Company Limited [Member]
Rental fees:
Sanhe Dong Yi (Capital lease interest payable)	172,611	52,542
Borrowings:
Short-term Debt	0	160,865
Zhou Deng Rong [Member]
Prepaid expenses on behalf of the company:
Prepaid Expense, Current	$ 556,992	$ 354,112

RELATED PARTY TRANSACTIONS (D37

RELATED PARTY TRANSACTIONS (Details Textual)

May. 01, 2012USD ($)

May. 01, 2012CNY (¥)

Apr. 25, 2015USD ($)

Aug. 31, 2014CNY (¥)

Jul. 31, 2014CNY (¥)

Jul. 25, 2014shares

May. 31, 2014USD ($)

May. 31, 2014CNY (¥)

Apr. 30, 2014USD ($)

Jul. 18, 2013CNY (¥)

Apr. 28, 2012a

Apr. 30, 2015USD ($)a

Apr. 30, 2015CNY (¥)

Apr. 25, 2015CNY (¥)

Jul. 31, 2014USD ($)

Apr. 30, 2014CNY (¥)

Jul. 18, 2013USD ($)

Jul. 18, 2013CNY (¥)

Related Party Transaction [Line Items]

Due from Related Parties, Current

$ 403,109

$ 0

Due to Related Parties, Current

$ 18,978

18,934

Lease Expiration Date

Apr. 30, 2024

Apr. 30, 2024

Accrued Rent, Current

$ 172,611

$ 52,542

Business Acquisition Percentage Of Issued And Outstanding Shares

51.40%

51.40%

Office And Factory [Member]

Related Party Transaction [Line Items]

Rental Income, Nonoperating

113,492

¥ 697,248

Agricultural Land [Member]

Related Party Transaction [Line Items]

Area of Land | a

44.3

Rental Income, Nonoperating

21,095

129,600

Payments for Rent

$ 5,617

¥ 34,510

Operating Lease Expiration Period

18 years and 8 months

Sanhe Dong Yi Glass Machine Company Limited [Member]

Related Party Transaction [Line Items]

Short-term Debt

$ 0

$ 160,865

Related Party Transaction, Purchases from Related Party

$ 1,261,872

¥ 7,844,300

Sanhe Dong Yi Glass Machine Company Limited [Member] | Office And Factory [Member]

Related Party Transaction [Line Items]

Area of Land | a

4,748.96

Payments for Rent | ¥

¥ 1,306,500

Operating Lease Expiration Period

30 years

30 years

Kelitai Air Powered Machinery Co Ltd [Member]

Related Party Transaction [Line Items]

Short-term Debt

$ 507,917

$ 483,830

$ 0

¥ 3,150,000

1,242,198

¥ 3,000,000

$ 1,242,198

¥ 7,722,000

Repayments of Short-term Debt | ¥

¥ 1,000,000

¥ 2,000,000

¥ 5,233,000

Short-term Debt, Percentage Bearing Fixed Interest Rate

5.00%

5.00%

Due from Related Parties, Current

$ 403,109

Prepaid Rent

1,242,198

Due to Related Parties, Current

0

1,235,667

Accrued Rent, Current

133,324

33,253

Debt Instrument, Maturity Date

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2014

Zhou Jian [Member]

Related Party Transaction [Line Items]

Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares

264,850,740

Business Acquisition, Percentage of Voting Interests Acquired

97.00%

Zhou Deng Rong [Member]

Related Party Transaction [Line Items]

Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares

8,191,260

Business Acquisition, Percentage of Voting Interests Acquired

3.00%

Directors [Member]

Related Party Transaction [Line Items]

Due to Related Parties, Noncurrent

417,776

430,928

Hengruier Machinery Company Limited [Member]

Related Party Transaction [Line Items]

Due to Related Parties, Current

$ 0

$ 1,242,198

GOVERNMENT CONTRIBUTION PLAN (D

GOVERNMENT CONTRIBUTION PLAN (Details Textual) - USD ($)	9 Months Ended	12 Months Ended
	Apr. 30, 2015	Jul. 31, 2014
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 54,403	$ 22,098

STATUTORY RESERVE (Details Text

STATUTORY RESERVE (Details Textual)	9 Months Ended
	Apr. 30, 2015
Foreign Tax Authority [Member]
Statutory Reserve Disclosure [Line Items]
Statutory Surplus Reserve Fund Percentage	10.00%
Registered Capital Appropriation Percentage	50.00%
CHINA
Statutory Reserve Disclosure [Line Items]
Statutory Surplus Reserve Fund Percentage	10.00%
Registered Capital Appropriation Percentage	50.00%

CAPITAL STOCK AND EQUITY TRAN40

CAPITAL STOCK AND EQUITY TRANSACTIONS (Details Textual) - USD ($)	1 Months Ended		12 Months Ended
	Jul. 25, 2014	Sep. 23, 2013	Jul. 31, 2010	Jul. 31, 2009	Apr. 30, 2015	Jul. 31, 2014
Class of Stock [Line Items]
Common Stock Shares Authorized					1,000,000,000	1,000,000,000
Common Stock Par Or Stated Value Per Share					$ 0.001	$ 0.001
Development Stage Entities, Stock Issued, Value, Issued for Cash			$ 30,000	$ 25,000
Preferred stock, shares authorized					100,000,000	100,000,000
Preferred Stock Par Or Stated Value Per Share					$ 0.001	$ 0.001
Business Acquisition Percentage Of Issued And Outstanding Shares	51.40%					51.40%
Exchange of Stock for Stock [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, Acquisitions		250,000,000
Zhou Jian [Member]
Class of Stock [Line Items]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	264,850,740
Business Acquisition, Percentage of Voting Interests Acquired	97.00%
Zhou Deng Rong [Member]
Class of Stock [Line Items]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	8,191,260
Business Acquisition, Percentage of Voting Interests Acquired	3.00%
Common Stock [Member]
Class of Stock [Line Items]
Development Stage Entities, Stock Issued, Shares, Issued for Cash			3,000,000	5,000,000
Stock Issued During Period, Shares, Acquisitions		250,000,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	Apr. 30, 2015	Jul. 31, 2014
Deferred tax assets:
Net operating losses	$ 224,460	$ 170,552
Total deferred tax assets	224,460	170,552
Less: valuation allowance	(224,460)	(170,552)
Deferred tax assets, net	$ 0	$ 0

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2014	Jul. 31, 2014
Income Taxes [Line Items]
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent			34.00%		34.00%
Operating Loss Carryforwards	$ 660,179		$ 660,179
Income Tax Expense (Benefit)	(20,548)	$ (27,857)	$ (179,120)	$ (38,261)
CHINA
Income Taxes [Line Items]
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent			25.00%
Luck Sky Shenzhen [Member]
Income Taxes [Line Items]
Operating Loss Carryforwards	30,036		$ 30,036
Operating Loss Carry forwards Expiration Term			5 years
Income Tax Expense (Benefit)				$ 7,529
Sanhe [Member]
Income Taxes [Line Items]
Operating Loss Carryforwards	901,742		$ 901,742
Deferred Tax Assets, Net	$ 298,171		$ 298,171		$ 111,844
Operating Loss Carry forwards Expiration Term			5 years

COMMITMENTS, CONTINGENCIES, R43

COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES (Details)	Apr. 30, 2015USD ($)
Operating Leased Assets [Line Items]
Remaining 2,015	$ 85,997
Year ending July 31, 2016	343,989
Year ending July 31, 2017	343,989
Year ending July 31, 2018	343,989
After 2,018	6,191,227
Total	$ 7,309,191

COMMITMENTS, CONTINGENCIES, R44

COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES (Details Textual) - USD ($)	1 Months Ended	9 Months Ended
	Sep. 23, 2013	Apr. 30, 2015	Apr. 30, 2014	Jul. 31, 2014
Operating Leased Assets [Line Items]
Capital Leases, Future Minimum Payments Due, Next Twelve Months		$ 19,508,643		$ 27,777,872
Operating Leases, Rent Expense, Net		$ 258,801	$ 2,943
Stock Issued During Period, Shares, Restricted Stock Award, Gross	67,000,000
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited	67,000,000	62,000,000
Chief Financial Officer [Member]
Operating Leased Assets [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	60,000,000
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		5,000,000
Non-Related Parties [Member]
Operating Leased Assets [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	7,000,000