v3.10.0.1

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($)	12 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2016
Revenue:
Sales	$ 7,831,497	$ 7,766,457	$ 21,287,515
Lease income	3,973,591	2,667,783	899,579
Total revenue	11,805,088	10,434,240	22,187,094
Cost of goods sold:
Cost of sales	1,926,972	544,141	12,116,076
Depreciation expense - leased equipment	1,920,735	1,319,795	434,474
Total cost of goods sold	3,847,707	1,863,936	12,550,550
Gross profit	7,957,381	8,570,304	9,636,544
Operating expenses:
Selling and marketing	1,054,958	682,986	1,229,968
General and administrative	2,288,841	1,020,167	1,294,271
Total operating expenses	3,343,799	1,703,153	2,524,239
Income from operations	4,613,582	6,867,151	7,112,305
Interest income	255,698	453,134	416,317
Government subsidy	918,906	883,389	937,878
Income before provision for income taxes	5,788,186	8,203,674	8,466,500
Provision for income taxes	1,190,694	1,820,855	1,912,914
Net income	$ 4,597,492	$ 6,382,819	$ 6,553,586
Earnings per common share, basic and diluted	$ 0.07	$ 0.10	$ 0.10
Weighted average shares outstanding, basic and diluted	64,209,912	63,020,871	63,020,871
Comprehensive income:
Net Income	$ 4,597,492	$ 6,382,819	$ 6,553,586
Foreign currency translation adjustment	3,853,411	(1,723,591)	(2,492,980)
Comprehensive income	$ 8,450,903	$ 4,659,228	$ 4,060,606

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Total costs related to goods produced and sold during the reporting period.

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Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Generally recurring costs associated with normal operations except for the portion of these expenses which can be clearly related to production and included in cost of sales or services. Includes selling, general and administrative expense.

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The net result for the period of deducting operating expenses from operating revenues.

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The total depreciation charge recorded for property subject to or held for lease.

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The total amount of revenue recognized for the period from operating leases, including minimum lease revenue, contingent revenue, percentage revenue and sublease revenue.

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Amount before tax, after reclassification adjustments of gain (loss) on foreign currency translation adjustments, on foreign currency transactions designated and effective as economic hedges of a net investment in a foreign entity and intra-entity foreign currency transactions that are of a long-term-investment nature, attributable to parent entity.

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Amount before tax, after reclassification adjustments of other comprehensive income (loss).

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Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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Total revenue from sale of goods and services rendered during the reporting period, in the normal course of business, reduced by sales returns and allowances, and sales discounts.

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Average number of shares or units issued and outstanding that are used in calculating basic and diluted earnings per share (EPS).

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China Xuefeng Environmental Engineering Inc. 10-K