China Xuefeng Environmental Engineering Inc.

CIK:0001518487|SEC Filings

Consolidated Statements of Income and Comprehensiove Income - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Nov. 30, 2018	Nov. 30, 2017
Revenue:
Sales	$ 2,781,860	$ 1,811,796	$ 5,554,445	$ 3,144,732
Lease income	999,127	948,442	2,033,590	1,834,534
Total revenue	3,780,987	2,760,238	7,588,035	4,979,266
Cost of goods sold:
Cost of Sales	1,136,888	126,987	2,307,568	267,435
Depreciation expense - leased equipment	479,082	458,868	975,109	887,659
Total cost of goods sold	1,615,970	585,855	3,282,677	1,155,094
Gross profit	2,165,017	2,174,383	4,305,358	3,824,172
Operating expenses:
Selling and marketing	278,968	252,662	574,575	429,568
General and administrative	280,714	281,625	570,489	522,286
R&D Expense	0	374,841		374,841
Total operating expenses	559,682	909,128	1,145,064	1,326,695
Income from operations	1,605,335	1,265,255	3,160,294	2,497,477
Interest income	13,680	69,560	39,623	152,247
Government Subsidy	217,310	227,093	442,306	449,248
Income before provision for income taxes	1,836,325	1,561,908	3,642,223	3,098,972
Provision for income taxes	400,566	296,280	788,511	614,847
Net income	$ 1,435,759	$ 1,265,628	$ 2,853,712	$ 2,484,125
Earnings per common share, basic and diluted	$ 0.02	$ 0.02	$ 0.04	$ 0.04
Weighted average shares outstanding, basic and diluted	66,520,871	64,187,538	66,520,871	63,604,204
Comprehensive Income:
Foreign currency translation adjustment	$ (1,267,390)	$ (162,023)	$ (5,706,904)	$ 1,748,560
Comprehensive income (loss)	$ 168,369	$ 1,103,605	$ (2,853,192)	$ 4,232,685

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Nov. 30, 2018	Nov. 30, 2017
Net Cash Provided by (Used in) Operating Activities
Net income	$ 2,853,712	$ 2,484,125
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Depreciation	2,191,719	941,370
Amortization for the land	60,743	61,697
(Increase) in deferred income tax assets	(18,817)	(272,103)
Changes in operating assets and liabilities:
Increase (Decrease) in Receivables	1,668,154	2,137,244
Increase (Decrease) in Inventories	12,396	(28,752)
Increase Decrease in Prepaid VAT	768,242	(312,117)
Increase (Decrease) in Prepaid Expense	(194,615)	(4,214,041)
Increase (Decrease) in Accounts Payable and Accrued Liabilities	(908,867)	4,060,305
Increase (Decrease) in Deferred Revenue	574,998	648,913
Increase (Decrease) in Accrued Taxes Payable	(39,226)	(49,759)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	6,968,439	5,456,882
Cash flows from investing activities:
Purchase of fixed assets	0	(5,930)
Cash paid for stock issuance costs	0	(141,975)
Purchase of items of leasing equipment	0	(3,699,121)
Net cash (used in) investing activities	0	(3,847,026)
Net Cash Provided by (Used in) Financing Activities
Cash received from stock issuance	0	7,000,000
Increase in security deposit payable	0	718,796
Loan from shareholders	28,890	0
Net Cash Provided by (Used in) Financing Activities	28,890	7,718,796
Effect of exchange rate changes on cash	(1,776,880)	(226,980)
Cash and Cash Equivalents, Period Increase (Decrease)	5,220,449	9,101,672
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	17,559,007	10,343,963
Cash and Cash Equivalents, at Carrying Value, Ending Balance	22,779,456	19,445,635
Supplemental Cash Flow Information
Income Taxes Paid, Net	846,554	935,701
Land appreciation tax paid	2,949	2,995
Supplemental disclosure of non-cash activities
Property, equipment, equipment and construction in progress accrued	0	9,120,991
Payment of accrued liabilities by shareholder	$ 28,890	$ 29,826

Consolidated Balance Sheets - USD ($)	Nov. 30, 2018	May 31, 2018
Current Assets
Cash	$ 22,779,456	$ 17,559,007
Accounts receivable	1,037,182	2,607,798
Inventory	22,620	37,669
Prepaid expenses	316,551	137,632
Prepaid VAT	3,503,376	4,615,812
Total current assets	27,659,185	24,957,918
Total current assets
Fixed assets, net	29,886,541	33,729,725
Lease equipment, net	24,076,905	27,167,719
Prepaid lease	5,298,806	5,816,243
Deferred income tax assets	777,374	823,949
Total noncurrent assets	60,039,626	67,537,636
TOTAL ASSETS	87,698,811	92,495,554
Current liabilities:
Accounts payable	84,853	1,049,776
Deferred revenues	4,241,555	3,995,944
Taxes payable	412,568	489,349
Loan from stockholder	10,106,909	10,892,539
Accrued liabilities	149,816	118,375
Total current liabilities	14,995,701	16,545,983
Security deposits payable	4,598,411	4,991,680
TOTAL LIABILITIES	19,594,112	21,537,663
Stockholders' equity:
Common stock, $0.001 par value per share, 75,000,000 shares authorized; 66,520,871 shares issued and outstanding as of November 30, 2018 and May 31, 2018	66,521	66,521
Additional paid-in capital	41,581,497	41,581,497
Statutory reserve fund	2,595,662	2,595,662
Retained earnings	29,315,915	26,462,203
Other comprehensive (loss) income	(5,454,896)	252,008
Total stockholders' equity	68,104,699	70,957,891
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 87,698,811	$ 92,495,554