Document and Entity Information
Document and Entity Information | 21 Months Ended |
Apr. 30, 2017 | |
Document Type | S1 |
Amendment Flag | true |
Amendment Description | THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(a), MAY DETERMINE. |
Document Period End Date | Apr. 30, 2017 |
Trading Symbol | goas |
Entity Registrant Name | XIANGTIAN (USA) AIR POWER CO., LTD. |
Entity Central Index Key | 1,472,468 |
Current Fiscal Year End Date | --07-31 |
Entity Filer Category | Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well Known Seasoned Issuer | No |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Apr. 30, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 |
Current assets | ||||
Cash and cash equivalence | $ 191,279 | $ 1,226,220 | $ 502,029 | $ 556,788 |
Accounts receivable | 1,552,477 | 2,848,904 | 4,720,093 | 0 |
Other receivables | 15,877 | 491,290 | 360,071 | 23,791 |
Advances to suppliers | 3,539,296 | 4,594,299 | ||
Advances to suppliers | 4,594,299 | 5,173,680 | 7,490,564 | |
Due from related parties | 72,569 | 0 | 611,879 | 638,926 |
Due from director | 145,138 | 0 | ||
Inventory | 3,291,950 | 2,080,853 | 1,463,856 | 1,142,726 |
Costs in excess of billings | 1,172,900 | 710,652 | 0 | 0 |
Deferred tax asset | 0 | 0 | 111,844 | |
Other current asset | 507,539 | 126,395 | 721,868 | 1,146,786 |
Total current assets | 10,489,025 | 12,078,613 | 13,553,476 | 11,111,425 |
Non-current assets | ||||
Property, plant and equipment, net | 4,290,367 | 4,520,735 | 7,679,323 | 6,779,256 |
Deposit for property, plant and equipment | 2,030,312 | 178,617 | 90,826 | 1,590,581 |
Total non-current assets | 6,320,679 | 4,699,352 | 7,770,149 | 8,369,837 |
Total assets | 16,809,704 | 16,777,965 | 21,323,625 | 19,481,262 |
Current liabilities | ||||
Accounts payable and accrued liabilities | 5,176,910 | 4,851,630 | 3,074,079 | 327,759 |
Capital lease obligations - current | 0 | 33,152 | 31,022 | |
Due to director | 415,652 | 414,876 | 417,770 | 430,928 |
Due to shareholder | 84,180 | 0 | 18,954 | 18,934 |
Due to related parties | 2,333,015 | 1,716,734 | 1,056,568 | 3,080,147 |
Advance from customers | 117,126 | 620,814 | 451,962 | 120,649 |
Deferred tax liabilities | 16,437 | 107,609 | 83,101 | 0 |
Other payables | 293,281 | 234,791 | 459,337 | 28,102 |
Income tax payable | 415,633 | 329,177 | 1,557 | 0 |
Net Advance billings | 897,191 | 0 | 3,489,776 | 3,847,085 |
Total current liabilities | 9,749,425 | 8,275,631 | 9,086,256 | 7,884,626 |
Non-current liabilities | ||||
Total liabilities | 9,749,425 | 8,275,631 | 11,774,143 | 10,602,732 |
Commitments and contingencies | 0 | 0 | 0 | 0 |
STOCKHOLDERS' EQUITY | ||||
Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued and outstanding | 0 | 0 | 0 | 0 |
Common stock: $0.001 par value, 1,000,000,000 shares authorized, 591,042,000 shares issued and outstanding | 591,042 | 591,042 | 591,042 | 598,042 |
Additional paid-in capital | 9,718,175 | 9,713,675 | 9,457,675 | 9,451,675 |
Subscription receivable | (310,000) | (310,000) | (310,000) | (317,000) |
Accumulated deficit | (1,893,532) | (812,935) | (204,751) | (862,211) |
Accumulated other comprehensive loss | (1,045,406) | (679,448) | 15,516 | 8,024 |
Total stockholders' equity | 7,060,279 | 8,502,334 | 9,549,482 | 8,878,530 |
Total liabilities and stockholders' equity | $ 16,809,704 | 16,777,965 | 21,323,625 | 19,481,262 |
Capital lease obligations - non-current | 0 | 2,687,887 | 2,718,106 | |
Total non-current liabilities | $ 0 | $ 2,687,887 | $ 2,718,106 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2017 | Jul. 31, 2016 | Jul. 31, 2015 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | |||
Preferred stock, shares outstanding | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 591,042,000 | 591,042,000 | 591,042,000 |
Common stock, shares outstanding | 591,042,000 | 591,042,000 | 591,042,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Revenue | $ 3,276,810 | $ 8,940,206 | $ 4,329,466 | $ 9,009,326 | $ 10,839,955 | $ 20,772,028 | $ 0 |
Cost of sales | 2,765,087 | 7,957,023 | 3,670,799 | 8,020,566 | 9,642,803 | 17,781,011 | 0 |
Gross profit | 511,723 | 983,183 | 658,667 | 988,760 | 1,197,152 | 2,991,017 | 0 |
Operating expenses: | |||||||
Selling expenses | 5,337 | 6,668 | 23,527 | 16,015 | 24,184 | 21,912 | 5,479 |
General and administrative expenses | 544,865 | 401,734 | 1,712,892 | 1,027,521 | 1,699,679 | 1,216,041 | 745,127 |
Total operating expenses | 550,202 | 408,402 | 1,736,419 | 1,043,536 | 1,723,863 | 1,237,953 | 750,606 |
(Loss) gain from operations | (38,479) | 574,781 | (1,077,752) | (54,776) | (526,711) | 1,753,064 | (750,606) |
Other (expenses) income | |||||||
Interest income | 116 | 136 | 1,154 | 136 | |||
Interest expense | 276 | (178,661) | (44,909) | ||||
Other expenses | 0 | 0 | (53) | 0 | 0 | (90) | 0 |
Non-operating income (expense) | 1,079 | (767) | 7,496 | 135,296 | 144,933 | 0 | 0 |
Exchange gain (loss) | 0 | 8 | 0 | (17,910) | 0 | (13) | 389 |
Total other income (expenses), net | 1,195 | (623) | 8,597 | 117,522 | 145,209 | (178,764) | (44,520) |
Net (loss) income before taxes | (37,284) | 574,158 | (1,069,155) | 62,746 | (381,502) | 1,574,300 | (795,126) |
Income tax expenses | (71,372) | (295,439) | (11,442) | (222,361) | (226,682) | (916,840) | 113,932 |
Net (loss) income after taxes | (108,656) | 278,719 | (1,080,597) | (159,615) | (608,184) | 657,460 | (681,194) |
Foreign currency translation adjustment | (20,679) | 151,172 | (365,958) | (420,880) | (694,964) | 7,492 | 7,552 |
Comprehensive (loss) income | $ (129,335) | $ 429,891 | $ (1,446,555) | $ (580,495) | $ (1,303,148) | $ 664,952 | $ (673,642) |
Net (loss) income per common share - basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding - basic and diluted | 591,042,000 | 591,042,000 | 591,042,000 | 591,042,000 | 591,042,000 | 597,907,753 | 284,206,285 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Cash flows from operating activities: | |||||
Net loss | $ (1,080,597) | $ (159,615) | $ (608,184) | $ 657,460 | $ (681,194) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||
Depreciation | 214,664 | 201,090 | 266,773 | 414,623 | 74,053 |
Allowance for doubtful accounts | 60,242 | 0 | 0 | ||
Rent contributed by shareholders as paid-in capital | 4,500 | 4,500 | 6,000 | 6,000 | 6,000 |
Gain on termination of capital lease | 0 | (129,159) | (128,379) | 0 | 0 |
Changes in operating assets and liabilities: | |||||
Accounts receivable | 1,348,286 | (1,445,208) | 1,758,079 | (4,736,375) | 0 |
Other receivables | 311,056 | (164,202) | 43,289 | (337,078) | (24,235) |
Prepayment | 1,127,376 | 805,207 | 485,715 | 2,438,844 | (7,630,372) |
Inventory | (1,788,872) | 2,233,930 | 503,892 | 6,315,793 | (9,825,555) |
Due from related party | 0 | (117,041) | 583,124 | (581,671) | 0 |
Deferred tax asset | 0 | 113,932 | (113,932) | ||
Other current asset | (383,728) | 606,446 | 594,895 | 422,426 | (1,146,785) |
Accounts payable and accrued liabilities | 267,203 | 2,745,623 | 1,881,936 | 2,900,812 | 69,894 |
Other payables and tax payables | 139,164 | 341,447 | 115,154 | 607,729 | 105,623 |
Advance billings on contracts | 517,312 | (5,668,290) | |||
Advance from customers | (5,213,700) | (6,056,247) | 12,052,437 | ||
Advance from shareholders | 0 | 0 | (50,165) | ||
Deferred tax liability | (93,601) | (83,388) | 26,832 | 83,388 | 0 |
Net cash provided by (used in) operating activities | 582,763 | (828,660) | 375,668 | 2,249,636 | (7,164,231) |
Cash flows from investing activities: | |||||
Purchase of property and equipment | (1,887,453) | (98,250) | (91,814) | (63,234) | (5,792,087) |
Loan repaid from/(made to) related parties | 30,865 | (32,319) | 0 | ||
Repayment of loan made to related parties | 0 | 31,053 | (185,190) | 0 | 0 |
Repayment of loan made to third parties | 176,105 | 0 | |||
Net cash used in investing activities | (1,711,348) | (67,197) | (246,139) | (95,553) | (5,792,087) |
Cash flows from financing activities: | |||||
Advances from related parties | 611,281 | 392,061 | 671,461 | (2,022,822) | 3,046,744 |
Advances from director | 1,799 | 1,327 | (2,817) | (13,007) | 421,665 |
Loan made to director | (146,754) | 0 | |||
Advances from shareholders | 85,118 | 250,000 | 0 | 0 | 19,287 |
Capital contribution from shareholders | 250,000 | 0 | 8,013,774 | ||
Net cash provided by financing activities | 551,444 | 643,388 | 918,644 | (2,035,829) | 11,501,470 |
Effect of exchange rate change on cash | (457,800) | (205,007) | (323,982) | (173,013) | 371,629 |
Net change in cash and cash equivalents | (1,034,941) | (457,476) | 724,191 | (54,759) | (1,083,219) |
Cash and cash equivalents - beginning of period | 1,226,220 | 502,029 | 502,029 | 556,788 | 1,640,007 |
Cash and cash equivalents - end of period | $ 191,279 | $ 44,553 | 1,226,220 | 502,029 | 556,788 |
Supplemental disclosure of cash flow information | |||||
Interest paid | 0 | 0 | 0 | ||
Income tax paid | $ 140,171 | $ 426,616 | $ 0 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Subscription Receivable [Member] | Deficit Accumulated [Member] | Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Sep. 02, 2008 | $ 0 | |||||
Beginning Balance (Shares) at Sep. 02, 2008 | 0 | |||||
Common stock issued for cash | $ 5,000 | $ 20,000 | $ 25,000 | |||
Common stock issued for cash (Shares) | 5,000,000 | |||||
Net income | $ (19,525) | (19,525) | ||||
Ending Balance at Jul. 31, 2009 | $ 5,000 | 20,000 | (19,525) | 5,475 | ||
Ending Balance (Shares) at Jul. 31, 2009 | 5,000,000 | |||||
Common stock issued for cash | $ 3,000 | 27,000 | 30,000 | |||
Common stock issued for cash (Shares) | 3,000,000 | |||||
Common stock issued | $ 30,000 | |||||
Common stock issued (Shares) | 3,000,000 | |||||
Net income | (24,141) | $ (24,141) | ||||
Ending Balance at Jul. 31, 2010 | $ 8,000 | 47,000 | (43,666) | 11,334 | ||
Ending Balance (Shares) at Jul. 31, 2010 | 8,000,000 | |||||
Net income | (18,818) | (18,818) | ||||
Ending Balance at Jul. 31, 2011 | $ 8,000 | 47,000 | (62,484) | (7,484) | ||
Ending Balance (Shares) at Jul. 31, 2011 | 8,000,000 | |||||
Sale of Goa Excursion | 20,460 | 20,460 | ||||
Donated rent | 1,500 | 1,500 | ||||
Net income | (30,944) | (30,944) | ||||
Ending Balance at Jul. 31, 2012 | $ 8,000 | 68,960 | (93,428) | (16,468) | ||
Ending Balance (Shares) at Jul. 31, 2012 | 8,000,000 | |||||
Contribution from shareholders | 1,629,983 | 1,629,983 | ||||
Donated rent | 6,000 | 6,000 | ||||
Other comprehensive income | $ 472 | 472 | ||||
Net income | (87,589) | (87,589) | ||||
Ending Balance at Jul. 31, 2013 | $ 8,000 | 1,704,943 | (181,017) | 472 | 1,532,398 | |
Ending Balance (Shares) at Jul. 31, 2013 | 8,000,000 | |||||
Common stock issued | $ 317,000 | $ (317,000) | ||||
Common stock issued (Shares) | 317,000,000 | |||||
Common stock issued for the acquisition of Sanhe | $ 273,042 | (273,042) | ||||
Common stock issued for the acquisition of Sanhe (Shares) | 273,042,000 | |||||
Contribution from shareholders | 8,013,774 | 8,013,774 | ||||
Donated rent | 6,000 | 6,000 | ||||
Other comprehensive income | 7,552 | 7,552 | ||||
Net income | (681,194) | (681,194) | ||||
Ending Balance at Jul. 31, 2014 | $ 598,042 | 9,451,675 | (317,000) | (862,211) | 8,024 | 8,878,530 |
Ending Balance (Shares) at Jul. 31, 2014 | 598,042,000 | |||||
Donated rent | 6,000 | 6,000 | ||||
Cancellation of issued shares | $ (7,000) | 7,000 | ||||
Cancellation of issued shares (Shares) | (7,000,000) | |||||
Other comprehensive income | 7,492 | 7,492 | ||||
Net income | 657,460 | 657,460 | ||||
Ending Balance at Jul. 31, 2015 | $ 591,042 | 9,457,675 | (310,000) | (204,751) | 15,516 | 9,549,482 |
Ending Balance (Shares) at Jul. 31, 2015 | 591,042,000 | |||||
Contribution from shareholders | 250,000 | 250,000 | ||||
Donated rent | 6,000 | 6,000 | ||||
Other comprehensive income | (694,964) | (694,964) | ||||
Net income | (608,184) | (608,184) | ||||
Ending Balance at Jul. 31, 2016 | $ 591,042 | $ 9,713,675 | $ (310,000) | $ (812,935) | $ (679,448) | 8,502,334 |
Ending Balance (Shares) at Jul. 31, 2016 | 591,042,000 | |||||
Net income | (1,080,597) | |||||
Ending Balance at Apr. 30, 2017 | $ 7,060,279 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
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 shares of the Company’s common stock ( 90% of the then outstanding shares). Luck Sky purchased all 7,200,000 shares for an aggregate of $235,000. The sale was completed on May 15, 2012. On May 25, 2012, the Company formed a corporation under the laws of the State of Delaware called Xiangtian (USA) Air Power Co., Ltd. ("Merger Sub") and on the same day, acquired one hundred shares of Merger Sub's common stock for cash. As such, Merger Sub became a wholly-owned subsidiary of the Company. 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 shares of common stock of the Company. Prior to the merger, HK Shares had no liabilities and nominal assets. On September 23, 2013, the Company issued 250,000,000 shares of common stock to the shareholders of HK Shares. Effectively on September 24, 2013, the shareholders of HK Shares accepted the shares from the Company and surrendered its control of HK Shares to the Company in exchange of 250,000,000 shares of HK Shares to be issued to its shareholders. On October 16, 2013, HK Shares completed the issuance of its 250,000,000 shares accordingly. Management cancelled HK Shares in October 2014. 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% and 3%, respectively, of Sanhe; entered into a series of agreements known as variable interest agreements (the “VIE Agreements”) pursuant to which Sanhe became Luck Sky Shen Zhen’s contractually controlled affiliate. The purpose and effect of the VIE Agreements is to provide Luck Sky Shen Zhen (our indirect wholly-owned subsidiary) with all of the management, control and net profits of Sanhe. 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 and 8,191,260 shares, respectively, of our common stock, representing 51.4% of our issued and outstanding shares of common stock. Reincorporation in Nevada We reincorporated in Nevada effective October 31, 2016 as a result of a merger of Xiangtian (USA) Air Power Co., Ltd., a Delaware corporation, with its wholly-owned subsidiary, Xiangtian (USA) Air Power Co., Ltd., a Nevada corporation. | 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 (“Lucky Sky”), an entity owned and controlled by Zhou Deng Rong, and certain of our former stockholders who owned, in the aggregate, 7,200,000 shares of the Company’s common stock ( 90% of the at then outstanding shares). Luck Sky purchased all 7,200,000 shares for an aggregate of $235,000. The sale was completed on May 15, 2012. On May 1, 2012, the Company sold its Indian subsidiary, Goa Excursion Private Limited (“Goa Excursion”), to IqbalBoga for a total value of $10. Both the purchaser and the seller fully release, discharge, waive, and hold harmless the subsidiary’s debts and liabilities, including related party’s debts. On May 25, 2012, the Company formed a corporation under the laws of the State of Delaware called Xiangtian (USA) Air Power Co., Ltd. ("Merger Sub") and on the same day, acquired one hundred shares of Merger Sub's common stock for cash. As such, Merger Sub became a wholly-owned subsidiary of the Company. 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. 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 shares of common stock of the Company. As a result of the acquisition, HK Shares was merged into the Company. On May 30, 2014, the Company entered into a Stock Purchase Agreement and acquired 100% of the issued and outstanding shares of common stock of Luck Sky (Hong Kong) Aerodynamic Electricity Limited (“Luck Sky HK”), a Hong Kong corporation. Luck Sky (Shen Zhen) Aerodynamic Electricity Limited (“Luck Sky Shen Zhen”), a corporation incorporated under the laws of the People Republic of China (“PRC”), is a wholly owned subsidiary of Luck Sky HK. As a result of the acquisition, Luck Sky HK became a wholly owned subsidiary of the Company and Luck Sky Shen Zhen became an indirect subsidiary of the Company through Luck Sky HK. 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% and 3%, respectively, of Sanhe; entered into a series of agreements known as variable interest agreements (the “VIE Agreements”) pursuant to which Sanhe became Luck Sky Shen Zhen’s contractually controlled affiliate. The purpose and effect of the VIE Agreements is to provide Luck Sky Shen Zhen (our indirect wholly-owned subsidiary) with all of the management, control and net profits of Sanhe. 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 and 8,191,260 shares, respectively, of our common stock, representing 51.4% of the our issued and outstanding shares of common stock. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] | NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 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 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, 2016, 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, 2016. These interim financial statements should be read in conjunction with the audited financial statements for the year ended July 31, 2016, 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, 2016. 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 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 consolidate common control under the Company. 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. 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, 2017 and July 31, 2016 and for the nine months ended April 30, 2017 and 2016, respectively: April 30, July 31, 2017 2016 (Unaudited) Total assets $ 16,523,294 $ 16,566,891 Total liabilities 9,051,307 7,944,737 For the nine For the nine months months Ended ended April 30, April 30, 2017 2016 (Unaudited) (Unaudited) Net loss $ 842,907 $ 223,651 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 includes 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, 2017 and July 31, 2016. 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. Advances to suppliers Advances to suppliers consist of the prepayment for inventories, including PV panels, storage tanks and other accessory parts. 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. 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. Estimated useful lives are as follows, taking into account the assets' estimated residual value: Classification Estimated useful life Machinery equipment 5 - 10 years Computer and office equipment 3 years Vehicle 5 years Property under capital lease 20 years Revenue Recognition Sales of power generation system in conjunction of system installation are recognized under accounting for construction-type contracts, based on the nature of the contract using the Completed-Contract Method. The reason for selecting completed-contract method is (a) The Company’s contract is duration is less than one year and financial position and results of operations would not vary materially from those resulting from use of the percentage-of completion method. (b) Reasonably dependable estimate cannot be made due to nature of contracts. 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. Percentage-of Completion Method For contracts with long duration and it is practical to make reasonable estimate, percentage-of completion method is used. Revenue is recognized based on the percentage of total income. The percentage is based on incurred costs to date bearing to estimate total cost after giving effect to estimates of cost to complete based on most recent information. We provide for any loss that we expect to incur on these contracts when that loss is probable. 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. Generally, the estimated claim rates of warranty are based on actual warranty experience or Company’s best estimate. 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 The Company is subject to VAT at a rate of 17% on proceeds received from customers, and are entitled to a refund for VAT already paid or borne on the goods purchased by it that have generated the gross sales proceeds. The VAT balance is recorded in other payables on the balance sheets. 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 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 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 6.8900 and 6.6371 as of April 30, 2017 and July 31, 2016, respectively; stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period, which is 6.8141 and 6.4407 for the nine months ended April 30, 2017 and April 30, 2016. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. 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 7.7779 and 7.7588 as of April 30, 2017 and July 31, 2016, respectively; stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period, which is 7.7599 and 7.7591 the nine months ended April 30, 2017 and April 30, 2016, respectively. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. Earnings (Loss) per Share Basic earnings per share are 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 excludes all potential dilutive shares of common stock if their effect is anti-dilutive. There were no potential dilutive securities at April 30, 2017 or April 30, 2016. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for us in our first quarter of fiscal 2018 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09 (full retrospective method); or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09 (modified retrospective method). We are currently assessing the impact to our consolidated financial statements, and have not yet selected a transition approach. 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 July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under existing standards, the market amount requires consideration of replacement cost, net realizable value (NRV), and NRV less an approximately normal profit margin. The new ASU replaces market with NRV, defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or NRV less an approximately normal profit margin when measuring inventory. 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 impacts on the Company’s consolidated results of operations and financial condition. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): The amendments in this Update apply to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The amendments in this Update provide guidance on the following eight specific cash flow issues. The amendments are an improvement to GAAP because they provide guidance for each of the eight issues, thereby reducing the current and potential future diversity in practice described above. ASU 2016-15 is effective for the Company for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is still evaluating the effect that this guidance will have on the Company’s consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): “Restricted Cash”(“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The adoption of this guidance will result in the inclusion of the restricted cash balances within the overall cash balance and removal of the changes in restricted cash activity, which are currently recognized in Other financing activities, on the Statements of Consolidated Cash Flows. Furthermore, an additional reconciliation will be required to reconcile Cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to sum to the total shown in the Statements of Consolidated Cash Flows. The Company anticipates adopting this new guidance effective January 1, 2018. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. 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. | NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. 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 losses. 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. Principle of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, including the wholly-foreign owned enterprise ("WOFE"), and VIEs for which the Company 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. Details of the typical VIE structure of the Company's significant VIEs, primarily domestic companies associated with the operations of Sanhe, are set forth below: • Framework Agreement on Business Cooperation, entered between Luck Sky Shen Zhen and Sanhe, pursuant to which Luck Sky Shen Zhen and Sanhe have agreed to enter into a series of VIE agreements and to cooperate in all prospective of Sanhe’s business operation and management. • Exclusive Management, Consulting and Training and Technical Service Agreement, entered between Luck Sky Shen Zhen and Sanhe, pursuant to which Luck Sky Shen Zhen has agreed to provide Sanhe with complete business support and technical support and related management, training and consulting services. In consideration for such services, Luck Sky Shen Zhen is entitled to receive an amount equal to 100% of Sanhe’s net income. • Exclusive Option Agreement, entered among Luck Sky HK, Luck Sky Shen Zhen, Zhou Deng Rong, Zhou Jian and Sanhe, pursuant to which Zhou Deng Rong and Zhou Jian, the owners of Sanhe, have granted to Luck Sky Shen Zhen and Luck Sky HK the irrevocable right and option to acquire all of their equity interests in Sanhe. • Equity Pledge Agreement, entered among Luck Sky Shen Zhen, Zhou Deng Rong, Zhou Jian, and Sanhe, pursuant to which Zhou Deng Rong and Zhou Jian, the owners of Sanhe, have pledged all of their rights, titles and interests in Sanhe to Luck Sky Shen Zhen to guarantee Sanhe’s performance of its obligations under all the other VIE Agreements. • Know-How Sub-License Agreement, entered between Luck Sky Shen Zhen and Sanhe, pursuant to which Luck Sky Shen Zhen has granted Sanhe an exclusive right to use and develop a series of aerodynamics related patents and technologies with respect to electrical generation for commercial and residential structures, not including automobile and wind towers. Luck Sky Shen Zhen possesses the rights licensed under this agreement through two license agreements dated July 25, 2014 with Zhou Deng Rong, Zhou Jian and Lucksky Group, the owners of the aforesaid patents and technologies. For the sublicense contemplated under this Agreement, Sanhe will pay Luck Sky Shen Zhen an annual royalty fee of five percent of revenue; and • Power of Attorney. Pursuant to a power of attorney, each of the Sanhe stockholders agreed to irrevocably entrust Luck Sky Shen Zhen with his stockholder voting rights and other stockholder rights for representing him to exercise such rights at the stockholders’ meeting of Sanhe in accordance with applicable laws and its Article of Association, including, but not limited to, the right to sell or transfer all or any of his equity interest in Sanhe, and appoint and vote for the directors and Chairman of Sanhe as the authorized representative of the Sanhe stockholders. The term of each proxy and voting agreement is as long as each of the Sanhe stockholders is a shareholder of Sanhe and is binding on any transferee. Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIE under its control. Therefore, the Company considers that there is no asset in any of the consolidated VIE that can be used only to settle obligations of the VIE, except for registered capital and PRC statutory reserves. As all consolidated VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Company for any of the liabilities of the consolidated VIE. The Company’s total assets and liabilities presented in the consolidated financial statements represent substantially all of total assets and liabilities of the VIE because the other entities in the consolidation are non-operating holding entities with nominal assets and liabilities. 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 July 31, 2016, 2015 and 2014 and for the years ended July 31, 2016, 2015 and 2014, respectively: July 31, July 31, 2016 July 31, 2015 2014 Total assets $ 16,566,891 $ 20,948,502 $ 26,927,076 Total liabilities 7,944,737 11,457,633 17,610,720 For the year For the year year ended ended ended July 31, July 31, July 31, 2016 2015 2014 Net income (loss) $ (263,796 ) $ 165,029 $ (455,727 ) Financial Instrument The carrying amount reported in the balance sheet for cash, accounts receivable, inventory, other receivables, accounts payable, accrued liabilities and other payables approximate fair value because of the immediate or short-term maturity of these financial instruments. 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 July 31, 2016, 2015 and 2014. 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. Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollected amounts through a charge to earnings and a credit to an allowance for bad debts based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for bad debts and a credit to accounts receivable. 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. 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. Estimated useful lives are as follows, taking into account the assets' estimated residual value: Classification Estimated useful life Machinery equipment 5 - 10 years Computer and office equipment 3 years Vehicle 5 years Property under capital lease 20 years Impairment of Long-Lived Assets The Company accounts for impairment of plant and equipment and amortizable intangible assets in accordance with the standard, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of,” codified with ASC 360, which requires the Group to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value. Revenue Recognition Sales of power generation system in conjunction of system installation are recognized under accounting for construction-type contracts, based on the nature of the contract using the Completed-Contract Method. The reason for selecting completed-contract method is (a) The Company’s contract is duration is less than one year and financial position and results of operations would not vary materially from those resulting from use of the percentage-of completion method. (b) Reasonably dependable estimate cannot be made due to nature of contracts. 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. Percentage-of Completion Method For contractswith long duration and it is practical to make reasonable estimate, percentage-of completion method is used. Revenue is recognized based on the percentage of total income. The percentage is based on incurred costs to date bearing to estimate total cost after giving effect to estimates of cost to complete based on most recent information. We provide for any loss that we expect to incur on these contracts when that loss is probable. For the year ended July 31, 2016, percentage-of completion method is used for one contract which was not completed as of July 31, 2016. The gross revenue recognized under percentage-of completion method and completed-contract method are $874,510 and $9,997,255, respectively for the year ended July 31, 2016. For the year ended July 31, 2015, completed-contract method was used for all contracts. The gross revenue recognized under percentage-of completion method and completed-contract method are $0 and $20,829,309, respectively for the year ended July 31, 2015. 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. Generally, the estimated claim rates of warranty are based on actual warranty experience or Company’s best estimate. 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 The Company is subject to VAT at a rate of 17% on proceeds received from customers, and are entitled to a refund for VAT already paid or borne on the goods purchased by it that have generated the gross sales proceeds. The VAT balance is recorded in other payables on the balance sheets. 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. Segment Information The standard, “Disclosures about Segments of an Enterprise and Related Information,” codified with ASC 280, requires certain financial and supplementary information to be disclosed on an annual and interim basis for each reportable segment of an enterprise. The Company believes that it operates in one business segment (research, development, production, marketing and sales) and in one geographical segment (China), as all of the Company’s current operations are carried out in China. 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 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 6.6371 and 6.2097 as of July 31, 2016 and 2015, respectively; stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period, which is 6.4798 and 6.1884 for the years ended July 31, 2016 and 2015, respectively. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. For the purpose of presenting these financial statements of the subsidiary in Hong Kong, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, which is 7.7588 and 7.7514 as of July 31, 2016 and 2015, respectively; stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period, which is 7.7595 and 7.7536 for the years ended July 31, 2016 and 2015, respectively. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. 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 excludes all potential dilutive shares of common stock if their effect is anti-dilutive. There were no potential dilutive securities at July 31, 2016 and 2015. Related Parties A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. Recent Accounting Pronouncements In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under existing standards, the market amount requires consideration of replacement cost, net realizable value (NRV), and NRV less an approximately normal profit margin. The new ASU replaces market with NRV, defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or NRV less an approximately normal profit margin when measuring inventory. 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 impacts on the Company’s consolidated results of operations and financial condition. 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. 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, 2017 | |
GOING CONCERN [Text Block] | 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 $1,893,532 as of April 30, 2017 and further losses are anticipated in the development of its business raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. 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. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jul. 31, 2016 | |
ACQUISITIONS [Text Block] | NOTE 3 – ACQUISITIONS Acquisition of Luck Sky (Hong Kong) Shares Limited (“HK Shares”) On September 15, 2013, the Company entered into an agreement to acquire HK Shares, a Hong Kong corporation, for 250,000,000 shares of common stock of the Company. Prior to the acquisition, HK Shares was majority owned (approximately 41%) by Mr. Zhou Deng Hua who is the brother of the former CEO of the Company and a director of the Company. On September 23, 2013, the Company issued 250,000,000 shares of common stock to the shareholders of HK Shares in exchange for 250,000,000 shares of HK Shares subscribed at $0.001 per share for a total amount of $250,000. At the completion of the acquisition, HK Shares was merged into the Company. HK Shares was formed in September 24, 2013 and issued 250,000,000 shares at $0.001 to 24 shareholders for a total of $250,000. The shares subscribed were paid up on October 23, 2015. On the date of the merger acquisition HK Shares had no operations other than the subscription receivable; and accordingly, the transaction was accounted for as an acquisition from related party. The Company valued the 250,000,000 shares of common stock issued at $250,000 as there was no market for the Company’s common stock and it has limited or no trading; and there is thought to be minimal value in the Company at the time, therefore the par value is thought to match the assumed market price of the Company’s common stock which is at $0.001 per share. Acquisition of Luck Sky (Hong Kong) Aerodynamic Electricity Limited (“Luck Sky HK”) In order to comply with the PRC laws, rules and regulations that restrict foreign ownership of PRC companies, the management of the Company has made the following arrangement to go public in the United States of America (the “Going Public Arrangement”).On May 30, 2014, the Company entered into the Stock Purchase. Agreement with Zhou Jian, the sole shareholder of Luck Sky HK, a Hong Kong corporation, pursuant to which it purchased 100% of the issued and outstanding shares of common stock of Luck Sky HK. The Company paid Zhou Jian a purchase price in the amount of HKD $10,000.00 (approximately USD$1,289.98) in cash which is equal to amount of its registered capital. Zhou Jian, a director of the Company, is also the son of the former CEO of the Company, and a nephew of Mr. Zhou Deng Hua (a director and shareholder of the Company), as a result, the acquisition was accounted for as an acquisition from an entity under common control and the asset was recorded at Luck Sky HK’s historical cost. Luck Sky HK and Luck Sky Shen Zhen, a wholly owned subsidiary of Luck Sky HK, had no operating business, no liabilities and nominal assets as of the date of the acquisition. As a result of the acquisition, Luck Sky HK became our wholly owned subsidiary and Luck Sky Shen Zhen became our indirect subsidiary through Luck Sky HK. Acquisition of Sanhe City Lucksky Electrical Engineering Co., Ltd. (“Sanhe”) As part of the Going Public Arrangement, on July 25, 2014, Luck Sky Shen Zhen, the Company’s indirectly wholly-owned subsidiary, Sanhe City Lucksky Electrical Engineering Co., Ltd. (“Sanhe”), a corporation incorporated under the laws of the PRC; Mr. Zhou Jian and Mr. Zhou Deng Rong, the owners of 97% and 3%, respectively, of Sanhe; entered into a series of agreements known as VIE Agreements pursuant to which Sanhe became Luck Sky Shen Zhen’s affiliate through contractual control. The purpose and effect of the VIE Agreements is to provide Luck Sky Shen Zhen with all of the management, control and net profits of Sanhe. 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 such common stock purchase agreement, the Company issued Zhou Jian and Zhou Deng Rong 264,850,740 and 8,191,260 shares, respectively, of our common stock, representing a total of 46.2% of the our issued and outstanding shares of common stock. |
ADVANCES TO SUPPLIERS
ADVANCES TO SUPPLIERS | 9 Months Ended |
Apr. 30, 2017 | |
ADVANCES TO SUPPLIERS [Text Block] | NOTE 4 – ADVANCES TO SUPPLIERS Advances to suppliers consist of the following: April 30, July 31, 2017 2016 (Unaudited) Advances to suppliers $ 3,539,296 $ 4,594,299 |
INVENTORIES
INVENTORIES | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
INVENTORIES [Text Block] | NOTE 5 – INVENTORIES Inventories consist of the following: April 30, July 31, 2017 2016 (Unaudited) Raw materials $ 2,266,001 $ 1,151,708 Accessory parts 767,021 929,145 Contracts work in progress 258,928 - Total $ 3,291,950 $ 2,080,853 | NOTE 4 – INVENTORIES Inventories consist of the following: July 31, July 31, July 31, 2016 2015 2014 Raw materials $ 1,151,708 $ 365,248 $ 115,839 Accessory parts 929,145 848,887 635,708 Work in process - 249,721 391,179 Total $ 2,080,853 $ 1,463,856 $ 1,142,726 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
PROPERTY, PLANT AND EQUIPMENT [Text Block] | NOTE 6 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: April 30, July 31, 2017 2016 (Unaudited) Machinery equipment $ 4,903,364 $ 4,951,227 Computer and office equipment 65,948 53,933 Vehicle 66,793 69,339 Total property, plant and equipment 5,036,105 5,074,499 Less: accumulated depreciation (745,738 ) (553,764 ) Total $ 4,290,367 $ 4,520,735 Total depreciation expenses for the nine months ended April 30, 2017 and 2016 were $214,664 and $201,090, respectively. Depreciation relating to Contract work in progress for the nine months ended April 30, 2017 and 2016 were $15,685 and $182,565, respectively, and depreciation relating to general and administrative expenses for the nine months ended April 30, 2017 and 2016 were $198,979 and $18,525, respectively. | NOTE 5 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: July 31, July 31, July 31, 2016 2015 2014 Machinery equipment $ 4,951,227 $ 5,275,080 $ 3,997,506 Computer and office equipment 53,933 56,558 59,316 Vehicle 69,339 74,111 38,558 Property under capital lease - 2,759,547 2,756,573 Total property, plant and equipment 5,074,499 8,165,296 6,851,953 Less: accumulated depreciation (553,764 ) (485,973 ) (72,697 ) Total $ 4,520,735 $ 7,679,323 $ 6,779,256 Total depreciation expenses for the years ended July 31, 2016, 2015 and 2014 were $266,773, $414,623 and $74,053 respectively. Depreciation relating to Contract work in progress for the years ended July 31, 2016, 2015 and 2014 were $201,666, $252,473 and $38,241 respectively, and depreciation relating to general and administrative expenses for the years ended July 31, 2016, 2015 and 2014 were $65,107, $162,150 and $35,812 respectively. On August 1, 2015, the Company terminated the finance leasing with Sanhe Dong Yi Glass Machine Company Limited. The factory and office were returned to the lessor. The assets were no longer recorded as fixed assets, which lead to the decrease of Property, plant and equipment. The Company recognized $128,379 gain due to this termination. |
BILLINGS IN EXCESS OF COSTS
BILLINGS IN EXCESS OF COSTS | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
BILLINGS IN EXCESS OF COSTS [Text Block] | NOTE 7 – BILLINGS IN EXCESS OF COSTS Billings in excess of costs consist of the following: April 30, July 31, 2017 2016 (Unaudited) Costs incurred on uncompleted contracts $ 1,444,069 $ 853,787 Billings to date (1,168,360 ) (143,135 ) $ 275,709 $ 710,652 Included in the accompanying balance sheets as follows: Costs in excess of billings on uncompleted contracts $ 1,172,900 $ 710,652 Billings on uncompleted contracts in excess of costs (897,191 ) - $ 275,709 $ 710,652 | NOTE 6 – BILLINGS IN EXCESS OF COSTS Billings in excess of costs consist of the following: July 31, July 31, 2016 July 31, 2015 2014 Costs incurred on uncompleted contracts $ 853,787 $ 2,033,840 $ 7,863,873 Billings to date (143,135 ) (5,523,616 ) (11,710,958 ) $ 710,652 $ (3,489,776 ) $ (3,847,085 ) Included in the accompanying balance sheets as follows: Costs in excess of billings on uncompleted contracts $ 710,652 $ - $ - Billings on uncompleted contracts in excess of costs - (3,489,776 ) (3,847,085 ) $ 710,652 $ (3,489,776 ) $ (3,847,085 ) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
RELATED PARTY TRANSACTIONS [Text Block] | NOTE 8 - RELATED PARTY TRANSACTIONS 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. Construction Project On April 25, 2014, Sanhe entered into a construction project agreement with Xianning Lucksky Aerodynamic Electricity Ltd (“Xianning Lucksky”). As of July 31, 2016, the project was completed and $8,705,527 of revenue and $7,752,526 of cost of sales were recognized. On July 26, 2016, Sanhe entered into a construction project agreement of 3MW PV panel installations with Xianning Lucksky. As of July 31, 2016, the project was not started. As of April 30, 2017, the project was completed and $2,822,199 of revenue and $2,366,177 of cost of sales were recognized. On July 26, 2016, Sanhe entered into a construction project agreement of 4MW PV panel installations with Xianning Lucksky. As of April 30, 2017, the accumulated cost on the construction project was $169,572 and the accumulated billing was $1,066,763. On July 7, July 28 and August 5, 2016, Sanhe entered into three construction project agreements for 93KW, 365KW and 75KW PV panel installations with Sanhe Liguang Kelitai Equipment Ltd (“Sanhe Keilitai”)., Sanhe Keilitai is majority ( 95%) owned by Zhou Jian, our Chairman of the Board. As of April 30, 2017, the accumulated costs on the construction projects were $32,656, $68,974 and $67,126 and the accumulated billings were $18,109, $68,974 and $14,514 respectively. Sanhe has been working on a construction project for Xianning Lucksky, which agreed to reimburse Sanhe for the cost of the project. As of April 30, 2017, the project was completed and $90,310 of revenue and $80,617 of cost of sales were recognized. Due from related parties On January 19, 2017, Luck Sky Shen Zhen entered into a loan agreement with Sanhe Keilitai with an amount of $72,569 at 0.45% interest rate per month. The due date is July 19, 2017. The interest income for the nine months ended April 30, 2017 was $1,112. Due from director On January 19, 2017, Luck Sky Shen Zhen entered into two loan agreements with Zhou Jian with a total amount of $145,138. The due date is July 19, 2017 and non-interest bearing. Due to related parties 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 $102,855 (RMB697,248) per year and the dormitory is leased for a rent of $19,118 (RMB129,600) per year. The leases expire in April 30, 2024 and are subject to renewal with a prior two-month written notice. LuckSky Group is in the process of obtaining the land use approval and ownership certificate of the leased building. As of April 30, 2017 and July 31, 2016, the lease payables to LuckSky Group were $360,021 and $280,304, respectively. Until August 1, 2015, Sanhe leased 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 was used by Sanhe to demonstrate its products but the facility was primarily intended as a backup to the first facility in Sanhe City and/or for expansion. The factory and office are 4,748.96 square meters. The rent paid by Sanhe for the factory and the office was RMB1, 306,500 per year. As of April 30, 2017 and July 31, 2016, the rental fee accrued but unpaid under the leases from LuckSky Group and Sanhe Dong Yi were $237,028 and $246,060, respectively. On August 1, 2015, the two parties terminated the finance leasing. As the Company no longer needs the factory and office, the assets were returned to the lessor effective August 1, 2015. On July 27, 2016, Xianning Xiangtian Air Energy Electric Co., Ltd. (“Xianning Xiangtian”), the wholly-owned subsidiary of the Company, entered into a rental agreement with Xianning Lucksky. The space in the factory being leased is 4628 square meters. The factory space is leased for a rent of $81,924 (RMB555,360) per year. The lease expires on July 31, 2018 and is subject to renewal with a prior one-month written notice. On January 26, 2017, Xianning Lucksky lent $21,771 to Xianning Xiangtian. The Company used the funds for its operations. These advances are due on demand, unsecured and non-interest bearing. From November 2016, Xianning Lucksky prepaid $18,902 expenses for Xianning Xiangtian. From time to time, Mr. Zhou Deng Rong prepaid some expenses for the Company. As of April 30, 2017 and July 31, 2016, amounts due to related parties were as follows: April 30, July 31, 2017 2016 (Unaudited) Rental fees: LuckSky Group 360,021 280,304 Sanhe Dong Yi (Capital lease payable) 237,028 246,060 Xianning Lucksky 60,453 - Prepaid expenses on behalf of the company: Zhou Deng Rong 1,634,840 1,190,370 Xianning Lucksky 18,902 - Borrowings: Xianning Lucksky $ 21,771 $ - Total $ 2,333,015 $ 1,716,734 Due to Directors From time to time, the Company receives advances from its directors. As of April 30, 2017 and July 31, 2016, the Company received $415,652 and $414,876, respectively. The Company used the funds for its operations. These advances are due on demand, unsecured and non-interest bearing. Due to Shareholders From time to time, the Company receives advances from its shareholder, Zhou Deng Rong. As of April 30, 2017 and July 31, 2016, the Company received $84,180 and $0, respectively. The Company used the funds for its operations. These advances are due on demand, unsecured and non-interest bearing. | NOTE 7 - RELATED PARTY TRANSACTIONS Since inception, Sanhe rented an office from Sanhe Dong Yi Glass Machine Company Limited (“Sanhe Dong Yi”), a Company owned by Zhou Deng Rong, our former general manager and former majority shareholder of the Company. The rental period was from June 15, 2013 to June 14, 2014, and the full rent amount of $3,965 (RMB12,000) was paid in advance. The Company also paid $1,487 (RMB9,000) to Sanhe Dong Yi to purchase several articles of furniture and computer equipment for its operation purpose in September 2014. 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. 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 $105,053 (RMB697,248) per year and the dormitory is leased for a rent of $19,527 (RMB129,600) per year. The leases expire in April 30, 2024 and are subject to renewal with a prior two-month written notice. LuckSky Group is in the process of obtaining the land use approval and ownership certificate of the leased building. On April 28, 2012, Zhou Jian obtained the right of usage of 44.3 acres agricultural land where our principal office, factory and dormitory are located for 18 years and 8 months, starting May 1, 2012. The annual price paid for such usage rights is $5,200 (RMB34,510). On May 1, 2012, Zhou Jian signed a commitment letter that allowed Xiangtian Kelitai, Yanjiao Branch, a division of LuckSky Group to use this agricultural land. LuckSky Group constructed the buildings on such agricultural land. In the event we are unable to use our principal factory and office space as a result of this usage issue, the lease provides that LuckSky Group will use every effort to complete and perfect the ownership and usage rights, or provide Sanhe with equivalent space. On July 25, 2014, prior to the Acquisition, Sanhe and LuckSky Shen Zhen and Sanhe’s shareholders entered into a series of VIE Agreements, pursuant to which Sanhe became LuckSky 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 LuckSky 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 LuckSky 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 LuckSky 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% and 3%, respectively, of Sanhe. The Company agreed to issue to Zhou Jian and Zhou Deng Rong 264,850,740 and 8,191,260 shares, respectively, of the Company’s common stock, representing 51.4% of the issued and outstanding shares of common stock. Construction Project On April 25, 2014, Sanhe entered into a construction project agreement with Xianning Lucksky Aerodynamic Electricity Ltd (“Xianning Lucksky”). Prior to April 10, 2014, XianningLucksky was majorly ( 70%) owned by Zhou Deng Rong, former majority shareholder and former CEO of the Company, and former general manager of Sanhe; where he has significant influence over Xianning Lucksky. As of July 31, 2016, the project was completed and $8,705,527 of revenue and $7,752,526 of cost of sales were recognized. 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 (RMB3,150,000). The loan is unsecured and matures on December 31, 2015. If the loan is not fully repaid on the maturity date, Sanhe will be entitled to receive an interest at 5% per annum. As of July 31, 2016 and July 31, 2015, the outstanding principal on the loan was $0 and $32,208. On November 27, 2015, the Company lent another short-term capital loan for $15,209 to Xiangtian Kelitai without a contract. The loan is unsecured and bears no interest. This loan was repaid on March 8, 2016. Sanhe has been working on a construction project for Xiangtian Kelitai where Sanhe was promised to be reimbursed for the cost of the project. The accumulated cost on the construction project was $579,671 as of July 31, 2015. As of July 31, 2016, the project was completed and $811,197 of revenue and $730,141 of cost of sales were recognized. Due to related parties. 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 $105,053 (RMB697,248) per year and the dormitory is leased for a rent of $19,527 (RMB129,600) per year. The leases expire in April 30, 2024 and are subject to renewal with a prior two-month written notice. LuckSky Group is in the process of obtaining the land use approval and ownership certificate of the leased building.As of July 31, 2016 and 2015, the lease payables to LuckSky Group were $280,304 and $166,443, respectively. Until August 1, 2015, Sanhe leased 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 was used by Sanhe to demonstrate its products but the facility was primarily intended as a backup to the first facility in Sanhe City and/or for expansion. The factory and office are 4,748.96 square meters. The rent paid by Sanhe for the factory and the office was RMB1,306,500 per year. As of July 31, 2016, 2015 and 2014, the lease payables to Sanhe Dong Yi Glass Machine Company Limited were $246,060, $262,996 and $52,542, respectively. On August 1, 2015, the two parties terminated the finance lease. As the Company no longer needs the factory and office, the assets were returned to the lessor effective August 1, 2015. From time to time, Mr. Zhou Deng Rong prepaid some expenses for the company. As of July 31, 2016, 2015 and 2014, amounts due to related parties were as follows: July 31, July 31, 2016 July 31, 2015 2014 Rental fees: LuckSky Group 280,304 166,443 33,253 Sanhe Dong Yi (Capital lease payable) $ 246,060 $ 262,996 $ 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 1,190,370 627,129 354,112 Total $ 1,716,734 $ 1,056,568 $ 3,080,147 Due to Shareholders Since inception to April 2014, the Company’s shareholder has paid several employees’ salaries on behalf of the Company. On June 30, 2016 the shareholder announced to abandon his claim. As of July 31, 2016, 2015 and 2014, the amount due to shareholders was $0, $18,934 and $18,934 respectively. Due to Directors From time to time, the Company receives advances from its directors. As of July 31, 2016, 2015 and 2014, the Company received $414,876, $417,770 and $430,928, respectively. The Company used the funds for its operations. These advances are due on demand, unsecured and non-interest bearing. |
GOVERNMENT CONTRIBUTION PLAN
GOVERNMENT CONTRIBUTION PLAN | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
GOVERNMENT CONTRIBUTION PLAN [Text Block] | NOTE 9 -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 $127,279 and $92,134 as of April 30, 2017 and July 31, 2016, respectively. | 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 $92,134, $62,846 and $22,098 for the years ended July 31, 2016, 2015 and 2014, respectively. |
STATUTORY RESERVE
STATUTORY RESERVE | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
STATUTORY RESERVE [Text Block] | NOTE 10 - 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% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC ("PRC GAAP") at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss. | 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% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC ("PRC GAAP") at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss. |
CAPITAL STOCK AND EQUITY TRANSA
CAPITAL STOCK AND EQUITY TRANSACTIONS | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
CAPITAL STOCK AND EQUITY TRANSACTIONS [Text Block] | NOTE 11 - 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 shares with a par value of $0.001 per share. During the period ended July 31, 2009, the Company issued 5,000,000 shares of common stock for total cash proceeds of $25,000 to the Company’s sole director and officer. During the year ended July 31, 2010, the Company sold 3,000,000 shares of common stock for total cash proceeds of $30,000. On September 23, 2013, the Company issued 250,000,000 shares of common stock to the shareholders of HK Shares, in exchange of 250,000,000 shares of HK Shares. On September 23, 2013, the Company issued a total of 67,000,000 shares of restricted common stock at $0.001 per share, such that 60,000,000 shares were issued to Mr. Roy Thomas Phillips, who was then a consultant to the Company and later served as the acting CFO of the Company beginning July 29, 2014, and 7,000,000 shares were issued to two other non-related parties. The shares were issued in contemplation of a secondary offering. The Company takes the position that these shares should be cancelled since no secondary offering was consummated. The Company is taking steps to have these shares canceled. The Company valued the 67,000,000 shares of common stock issued at $67,000 as there was no market for the Company’s common stock and it has limited or no trading; and these shares are s thought to be of minimal value to the Company at the time of issuance, therefore the par value is thought to match the assumed book value of the Company’s common stock which is at $0.001 per share. On July 24, 2015, 7,000,000 shares issued to two other non-related parties were cancelled. 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% and 3%, respectively, of Sanhe. We agreed to issue to Zhou Jian and Zhou Deng Rong 264,850,740 and 8,191,260 shares, respectively, of our common stock, representing 51.4% of our issued and outstanding shares of common stock. Preferred Stock The total number of preferred shares authorized that may be issued by the Company is 100,000,000 shares with a par value of $0.001 per share. The preferred shares may be issued in one or more series, from time to time, with each series to have such designation, relative rights, preference or limitations, as adopted by the Company’s Board of Directors. No preferred shares have been issued. | 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 shares with a par value of $0.001 per share. During the period ended July 31, 2009, the Company issued 5,000,000 shares of common stock for total cash proceeds of $25,000 to the Company’s sole director and officer. During the year ended July 31, 2010, the Company sold 3,000,000 shares of common stock for total cash proceeds of $30,000. On September 23, 2013, the Company issued 250,000,000 shares of common stock to the shareholders of HK shares, in exchange of 250,000,000 shares of HK shares. On September 23, 2013, the Company issued a total of 67,000,000 shares of restricted common stock at $0.001 per share, such that 60,000,000 shares were issued to Mr. Roy Thomas Phillips, who was then a consultant to the Company and later served as the acting CFO of the Company beginning July 29, 2014, and 7,000,000 shares were issued to two other non-related parties. The shares were issued in contemplation of a secondary offering. The Company takes the position that these shares should be cancelled since no secondary offering was consummated. The Company is taking steps to have these shares canceled. The Company valued the 67,000,000 shares of common stock issued at $67,000 as there was no market for the Company’s common stock and it has limited or no trading; and there is thought to be minimal value in the Company at the time of issuance, therefore the par value is thought to match the assumed market price of the Company’s common stock which is at $0.001 per share. On July 24, 2015, 7,000,000 shares issued to two other non-related parties were cancelled. 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% and 3%, respectively, of Sanhe. We agreed to issue to Zhou Jian and Zhou Deng Rong 264,850,740 and 8,191,260 shares, respectively, of our common stock, representing 51.4% of the our issued and outstanding shares of common stock. Preferred Stock The total number of preferred shares authorized that may be issued by the Company is 100,000,000 shares with a par value of $0.001 per share. The preferred stock may be issued in one or more series, from time to time, with each series to have such designation, relative rights, preference or limitations, as adopted by the Company’s Board of Directors. No preferred shares have been issued. |
INCOME TAXES
INCOME TAXES | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
INCOME TAXES [Text Block] | NOTE 12 - 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. The cumulative tax effect at the expected rate of 34% of significant items comprising the net deferred tax amount is at April 30, 2017 and July 31, 2016 as follows: April 30, July 31, 2016 2017 (Unaudited) Deferred tax assets: Net operating losses $ 377,676 $ 228,278 Total deferred tax assets 377,676 228,278 Less: valuation allowance (377,676 ) (228,278 ) Deferred tax assets, net $ - $ - As of April 30, 2017, for U.S. federal income tax reporting purposes, the Company has approximately $1,110,812 of unused net operating losses (“NOLs”) available for carry forward to future years. The benefit from the carry forward of such NOLs will begin expiring during the year ended July 31, 2029. Because United States tax laws limit the time during which NOL carry forwards may be applied against future taxable income, the Company may be unable to take full advantage of its NOLs for federal income tax purposes should the Company generate taxable income. Further, the benefit from utilization of NOL carry forwards could be subject to limitations due to material ownership changes that could occur in the Company as it continues to raise additional capital. Based on such limitations, the Company has significant NOLs for which realization of tax benefits is uncertain. 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, 2017, 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 Shen Zhen For the nine months ended April 30, 2017 and 2016, Luck Sky Shen Zhen had $141,353 and $370,215 in net profit, $47,118 and $92,553 income tax was accrued accordingly. 2) Sanhe For the nine months ended April 30, 2017, Sanhe and Xianning Xiantian had $842,907 in net loss. 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. The cumulative tax effect at the expected rate of 25% of significant items comprising the net deferred tax amount is at April 30, 2017 and July 31, 2016 as follows: April 30, July 31, 2016 2017 (Unaudited) Deferred tax assets: - - Net operating losses $ - $ - Total deferred tax assets Less: valuation allowance - - Deferred tax assets, net $ - $ - Deferred tax liabilities: Timing differences of revenue recognition $ 16,437 $ 107,609 Total deferred tax liabilities 16,437 107,609 Significant components of income tax expense for the nine months ended April 30, 2017 and 2016 For the Nine For the Nine months months Ended ended April 30, April 30, 2017 2016 (Unaudited) (Unaudited) Current tax expense $ 99,636 $ 302,482 Deferred tax expense (88,194 ) (80,121 ) Tax expense (benefit) $ 11,442 $ 222,361 Reconciliation of Effective Income Tax Rate For the Nine For the Nine months months ended ended April 30, April 30, 2017 2016 (Unaudited) (Unaudited) Statutory U.S. tax rate 34.00% 34.00% PRC Statutory Tax Rate 25.00% 25.00% HK Statutory Tax Rate 15.00% 15.00% Permanent Difference ( 8.12% ) 178.91% Less: Valuation Allowance ( 75.20% ) 101.47% Deferred Tax 8.25% - Tax expense (benefit) ( 1.07% ) 354.38% | 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. The cumulative tax effect at the expected rate of 34% of significant items comprising the net deferred tax amount is at July 31, 2016, 2015 and 2014 as follows: 2016 2015 2014 Deferred tax assets: Net operating losses $ 228,278 $ 78,278 $ 170,552 Total deferred tax assets 228,278 78,278 170,552 Less: valuation allowance (228,278 ) (78,278 ) (170,552 ) Deferred tax assets, net $ - $ - $ - As of July 31, 2016, for U.S. federal income tax reporting purposes, the Company has approximately $1,403,259 of unused net operating losses (“NOLs”) available for carry forward to future years. The benefit from the carry forward of such NOLs will begin expiring during the year ended July 31, 2029. Because United States tax laws limit the time during which NOL carry forwards may be applied against future taxable income, the Company may be unable to take full advantage of its NOLs for federal income tax purposes should the Company generate taxable income. Further, the benefit from utilization of NOL carry forwards could be subject to limitations due to material ownership changes that could occur in the Company as it continues to raise additional capital. Based on such limitations, the Company has significant NOLs for which realization of tax benefits is uncertain. 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 July 31, 2016, 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 For the years ended July 31, 2016, 2015 and 2014, Luck Sky Shenzhen had $432,088, $963,727 in net income before tax and $6,283 in net operating loss, respectively. Income tax expense were $108,022 and $239,383 income tax expenses were 2016 and 2015, respectively. 2) Sanhe For the year ended July 31, 2016, Sanhe had $145,136 net loss before tax. 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. The cumulative tax effect at the expected rate of 25% of significant items comprising the net deferred tax amount is at July 31, 2016, 2015 and 2014 as follows: 2016 2015 2014 Deferred tax assets: Net operating losses $ - $ - $ 111,844 Total deferred tax assets - - 111,844 Less: valuation allowance - - - Deferred tax assets, net $ - $ - $ 111,844 Deferred tax liabilities: Timing differences of revenue recognition $ 107,609 $ 83,101 $ - Total deferred tax liabilities 107,609 83,101 - Significant components of income tax expense for the years ended July 31, 2016, 2015 and 2014 are as follows For the For the For the year year year ended July 31, ended ended 2014 July 31, July 31, 2016 2015 Current tax expense $ 196,099 $ 833,452 $ - Deferred tax expense 30,583 83,388 - Benefits of operating loss carryforwards - - (113,932 ) Tax expense (benefit) $ 226,682 $ 916,840 $ (113,932 ) Reconciliation of Effective Income Tax Rate For the For the year For the year year ended ended ended July 31, July 31, July 31, 2016 2015 2014 Statutory U.S. tax rate 34.00% 34.00% 34.00% PRC Statutory Tax Rate 25.00% 25.00% 25.00% HK Statutory Tax Rate 15.00% 15.00% 15.00% Less: Valuation Allowance (92.85% ) (45.44% ) (59.67% ) Nondeductible/nontaxable items (40.57% ) 29.40% - Tax expense (benefit) (59.42% ) 57.96% 14.33% Reconciliation of Effective Income Tax Expense For the For the year For the year year ended ended ended July 31, July 31, July 31, 2016 2015 2014 Statutory U.S. tax rate $ (228,278 ) $ (78,278 ) $ (170,552 ) PRC Statutory Tax Rate 71,923 451,874 (113,932 ) HK Statutory Tax Rate (185 ) (252 ) (675 ) Less: Valuation Allowance 228,463 464,966 171,227 Nondeductible/nontaxable items 154,759 75,530 - Tax expense (benefit) $ 226,682 $ 916,840 $ (113,932 ) |
COMMITMENTS, CONTINGENCIES, RIS
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES [Text Block] | NOTE 13. COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES Capital Commitments The capital commitments are mainly related to the future payments to suppliers. As of April 30, 2017 and July 31, 2016, the Company has a capital commitment of $15,764,399 and $9,247,569, respectively. The increase of capital commitments was caused by the increase of principal projects from 13 to 25. Funds will be generated from the customers in line with the projects' construction progress, and will be used to pay for our capital commitments. Operation Commitments The total future minimum lease payments under the non-cancellable operating lease with respect to the office and the dormitory as of April 30, 2017 are payable as follows: Year ending July 31, 2017 50,153 Year ending July 31, 2018 200,611 Year ending July 31, 2019 120,007 Year ending July 31, 2020 120,007 After 2020 450,026 Total $ 940,804 Rental expense of the Company for the nine months ended April 30, 2017 and 2016 were $152,134 and $96,284, respectively. 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. Contingencies On September 23, 2013, the Company issued 60,000,000 shares of restricted common stock at $0.001 per share to Mr. Roy Thomas Phillips, who was then a consultant to the Company and later served as the acting CFO of the Company beginning July 29, 2014, and two other non-related parties, obtained a total of 7,000,000 shares of restricted common stock. The shares were issued in contemplation of a secondary offering. The Company takes the position that these shares should be cancelled since no secondary offering was consummated. The Company is taking steps to have these shares canceled. The Company valued the 67,000,000 shares of common stock issued at $67,000 as there was no market for the Company’s common stock and it has limited or no trading; and there is thought to be minimal value in the Company at the time of issuance, therefore the par value is thought to match the assumed market price of the Company’s common stock which is at $0.001 per share. The issuance of these securities could result in further dilution to the Company’s stockholders which effects the earnings (loss) per share amount of the Company. The Company might incur additional expenses to have these shares canceled. On July 24, 2015, 7,000,000 shares issued to two other non-related parties were canceled. For the year ended July 31, 2015, the dilutive effect of not canceling the 60,000,000 shares is incorporated in the consolidated financial statements as the Company recorded such shares as issued and outstanding. The loss per share remained $0.00 with the dilutive effect of not canceling such shares. If the shares are not voluntarily returned for cancellation, the Company will need to commence litigation in Delaware to obtain a judgment to cancel the shares for lack of consideration. At this time, the Company is unable to estimate the cost such litigation if it takes place. | 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 July 31, 2016, 2015 and 2014, the Company has a capital commitment of $9,247,569, $17,697,627, and $27,777,872, respectively. Operation Commitments The total future minimum lease payments under the non-cancellable operating lease with respect to the office and the dormitory as of July 31, 2016 are payable as follows: Year ending July 31, 2017 124,580 Year ending July 31, 2018 124,580 Year ending July 31, 2019 124,580 Year ending July 31, 2020 124,580 After 2020 467,174 Total $ 965,494 Rental expense of the Company for the year ended July 31, 2016, 2015 and 2014 were $127,835, $344,736 and $89,760, respectively. 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. Contingencies On September 23, 2013, the Company issued 60,000,000 shares of restricted common stock at $0.001 per share to Mr. Roy Thomas Phillips, who was then a consultant to the Company and later served as the acting CFO of the Company beginning July 29, 2014, and two other non-related parties, obtained a total of 7,000,000 shares of restricted common stock. The shares were issued in contemplation of a secondary offering. The Company takes the position that these shares should be cancelled since no secondary offering was consummated. The Company is taking steps to have these shares canceled. The Company valued the 67,000,000 shares of common stock issued at $67,000 as there was no market for the Company’s common stock and it has limited or no trading; and there is thought to be minimal value in the Company at the time of issuance, therefore the par value is thought to match the assumed market price of the Company’s common stock which is at $0.001 per share. The issuance of these securities could result in further dilution to the Company’s stockholders which effects the earnings (loss) per share amount of the Company. The Company might incur additional expenses to have these shares canceled. On July 24, 2015, 7,000,000 shares issued to two other non-related parties were cancelled. For the year ended July 31, 2016, the dilutive effect of not canceling the 60,000,000 shares is incorporated in the consolidated financial statements as the Company recorded such shares as issued and outstanding. The loss per share remained $0.00 with the dilutive effect of not canceling such shares. If the shares are not voluntarily returned for cancellation, the Company will need to commence litigation in Delaware to obtain a judgment to cancel the shares for lack of consideration. At this time, the Company is unable to estimate the cost such litigation if it takes place. |
QUARTERLY DATA (UNAUDITED)
QUARTERLY DATA (UNAUDITED) | 12 Months Ended |
Jul. 31, 2016 | |
QUARTERLY DATA (UNAUDITED) [Text Block] | NOTE 13. QUARTERLY DATA (UNAUDITED) First Second Third Fourth Year 2016 Quarter Quarter Quarter Quarter 2016 Revenue $ 66,610 $ 2,510 $ 8,940,206 $ 1,830,629 $ 10,839,955 Cost of sales 62,015 1,528 7,957,023 1,622,237 9,642,803 Net income (loss) after taxes (212,343 ) (225,991 ) 278,719 (448,569 ) (608,184 ) Net earnings (loss) per common share – basic and diluted (0.00 ) (0.00 ) (0.00 ) (0.00 ) (0.00 ) First Second Third Fourth Year 2015 Quarter Quarter Quarter Quarter 2015 Revenue $ - $ - $ 1,133,522 $ 19,638,506 $ 20,772,028 Cost of sales - - 938,674 16,842,337 17,781,011 Net income (loss) after taxes (304,418 ) (362,275 ) (24,206 ) 1,348,359 657,460 Net earnings (loss) per common share – basic and diluted (0.00 ) (0.00 ) (0.00 ) 0.00 0.00 Gross profit is calculated as revenue minus cost of sales. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
Basis of Presentation [Policy Text Block] | 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. | 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 [Policy Text Block] | 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. | 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 [Policy Text Block] | 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, 2016, 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, 2016. These interim financial statements should be read in conjunction with the audited financial statements for the year ended July 31, 2016, 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, 2016. | |
Reclassification [Policy Text Block] | 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. | 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 losses. |
Principle of Consolidation [Policy Text Block] | 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 consolidate common control under the Company. 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. 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, 2017 and July 31, 2016 and for the nine months ended April 30, 2017 and 2016, respectively: April 30, July 31, 2017 2016 (Unaudited) Total assets $ 16,523,294 $ 16,566,891 Total liabilities 9,051,307 7,944,737 For the nine For the nine months months Ended ended April 30, April 30, 2017 2016 (Unaudited) (Unaudited) Net loss $ 842,907 $ 223,651 | Principle of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, including the wholly-foreign owned enterprise ("WOFE"), and VIEs for which the Company 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. Details of the typical VIE structure of the Company's significant VIEs, primarily domestic companies associated with the operations of Sanhe, are set forth below: • Framework Agreement on Business Cooperation, entered between Luck Sky Shen Zhen and Sanhe, pursuant to which Luck Sky Shen Zhen and Sanhe have agreed to enter into a series of VIE agreements and to cooperate in all prospective of Sanhe’s business operation and management. • Exclusive Management, Consulting and Training and Technical Service Agreement, entered between Luck Sky Shen Zhen and Sanhe, pursuant to which Luck Sky Shen Zhen has agreed to provide Sanhe with complete business support and technical support and related management, training and consulting services. In consideration for such services, Luck Sky Shen Zhen is entitled to receive an amount equal to 100% of Sanhe’s net income. • Exclusive Option Agreement, entered among Luck Sky HK, Luck Sky Shen Zhen, Zhou Deng Rong, Zhou Jian and Sanhe, pursuant to which Zhou Deng Rong and Zhou Jian, the owners of Sanhe, have granted to Luck Sky Shen Zhen and Luck Sky HK the irrevocable right and option to acquire all of their equity interests in Sanhe. • Equity Pledge Agreement, entered among Luck Sky Shen Zhen, Zhou Deng Rong, Zhou Jian, and Sanhe, pursuant to which Zhou Deng Rong and Zhou Jian, the owners of Sanhe, have pledged all of their rights, titles and interests in Sanhe to Luck Sky Shen Zhen to guarantee Sanhe’s performance of its obligations under all the other VIE Agreements. • Know-How Sub-License Agreement, entered between Luck Sky Shen Zhen and Sanhe, pursuant to which Luck Sky Shen Zhen has granted Sanhe an exclusive right to use and develop a series of aerodynamics related patents and technologies with respect to electrical generation for commercial and residential structures, not including automobile and wind towers. Luck Sky Shen Zhen possesses the rights licensed under this agreement through two license agreements dated July 25, 2014 with Zhou Deng Rong, Zhou Jian and Lucksky Group, the owners of the aforesaid patents and technologies. For the sublicense contemplated under this Agreement, Sanhe will pay Luck Sky Shen Zhen an annual royalty fee of five percent of revenue; and • Power of Attorney. Pursuant to a power of attorney, each of the Sanhe stockholders agreed to irrevocably entrust Luck Sky Shen Zhen with his stockholder voting rights and other stockholder rights for representing him to exercise such rights at the stockholders’ meeting of Sanhe in accordance with applicable laws and its Article of Association, including, but not limited to, the right to sell or transfer all or any of his equity interest in Sanhe, and appoint and vote for the directors and Chairman of Sanhe as the authorized representative of the Sanhe stockholders. The term of each proxy and voting agreement is as long as each of the Sanhe stockholders is a shareholder of Sanhe and is binding on any transferee. Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIE under its control. Therefore, the Company considers that there is no asset in any of the consolidated VIE that can be used only to settle obligations of the VIE, except for registered capital and PRC statutory reserves. As all consolidated VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Company for any of the liabilities of the consolidated VIE. The Company’s total assets and liabilities presented in the consolidated financial statements represent substantially all of total assets and liabilities of the VIE because the other entities in the consolidation are non-operating holding entities with nominal assets and liabilities. 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 July 31, 2016, 2015 and 2014 and for the years ended July 31, 2016, 2015 and 2014, respectively: July 31, July 31, 2016 July 31, 2015 2014 Total assets $ 16,566,891 $ 20,948,502 $ 26,927,076 Total liabilities 7,944,737 11,457,633 17,610,720 For the year For the year year ended ended ended July 31, July 31, July 31, 2016 2015 2014 Net income (loss) $ (263,796 ) $ 165,029 $ (455,727 ) |
Financial Instrument [Policy Text Block] | Financial Instrument The carrying amount reported in the balance sheet for cash, accounts receivable, inventory, other receivables, accounts payable, accrued liabilities and other payables approximate fair value because of the immediate or short-term maturity of these financial instruments. | |
Fair Value Measurements [Policy Text Block] | 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 includes 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, 2017 and July 31, 2016. | 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 July 31, 2016, 2015 and 2014. |
Cash and Cash Equivalents [Policy Text Block] | 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. | 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. |
Accounts Receivable [Policy Text Block] | Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollected amounts through a charge to earnings and a credit to an allowance for bad debts based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for bad debts and a credit to accounts receivable. | |
Advances to suppliers [Policy Text Block] | Advances to suppliers Advances to suppliers consist of the prepayment for inventories, including PV panels, storage tanks and other accessory parts. | |
Inventory [Policy Text Block] | 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. | 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. |
Property and equipment [Policy Text Block] | 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. Estimated useful lives are as follows, taking into account the assets' estimated residual value: Classification Estimated useful life Machinery equipment 5 - 10 years Computer and office equipment 3 years Vehicle 5 years Property under capital lease 20 years | 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. Estimated useful lives are as follows, taking into account the assets' estimated residual value: Classification Estimated useful life Machinery equipment 5 - 10 years Computer and office equipment 3 years Vehicle 5 years Property under capital lease 20 years |
Impairment of Long-Lived Assets [Policy Text Block] | Impairment of Long-Lived Assets The Company accounts for impairment of plant and equipment and amortizable intangible assets in accordance with the standard, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of,” codified with ASC 360, which requires the Group to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value. | |
Revenue Recognition [Policy Text Block] | Revenue Recognition Sales of power generation system in conjunction of system installation are recognized under accounting for construction-type contracts, based on the nature of the contract using the Completed-Contract Method. The reason for selecting completed-contract method is (a) The Company’s contract is duration is less than one year and financial position and results of operations would not vary materially from those resulting from use of the percentage-of completion method. (b) Reasonably dependable estimate cannot be made due to nature of contracts. 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. Percentage-of Completion Method For contracts with long duration and it is practical to make reasonable estimate, percentage-of completion method is used. Revenue is recognized based on the percentage of total income. The percentage is based on incurred costs to date bearing to estimate total cost after giving effect to estimates of cost to complete based on most recent information. We provide for any loss that we expect to incur on these contracts when that loss is probable. | Revenue Recognition Sales of power generation system in conjunction of system installation are recognized under accounting for construction-type contracts, based on the nature of the contract using the Completed-Contract Method. The reason for selecting completed-contract method is (a) The Company’s contract is duration is less than one year and financial position and results of operations would not vary materially from those resulting from use of the percentage-of completion method. (b) Reasonably dependable estimate cannot be made due to nature of contracts. 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. Percentage-of Completion Method For contractswith long duration and it is practical to make reasonable estimate, percentage-of completion method is used. Revenue is recognized based on the percentage of total income. The percentage is based on incurred costs to date bearing to estimate total cost after giving effect to estimates of cost to complete based on most recent information. We provide for any loss that we expect to incur on these contracts when that loss is probable. For the year ended July 31, 2016, percentage-of completion method is used for one contract which was not completed as of July 31, 2016. The gross revenue recognized under percentage-of completion method and completed-contract method are $874,510 and $9,997,255, respectively for the year ended July 31, 2016. For the year ended July 31, 2015, completed-contract method was used for all contracts. The gross revenue recognized under percentage-of completion method and completed-contract method are $0 and $20,829,309, respectively for the year ended July 31, 2015. |
Warranty and Returns [Policy Text Block] | 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. Generally, the estimated claim rates of warranty are based on actual warranty experience or Company’s best estimate. No right of return exists on sales of equipment. Replacement part returns are estimable and accrued at the time a sale is recognized. | 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. Generally, the estimated claim rates of warranty are based on actual warranty experience or Company’s best estimate. 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 [Policy Text Block] | Value added taxes The Company is subject to VAT at a rate of 17% on proceeds received from customers, and are entitled to a refund for VAT already paid or borne on the goods purchased by it that have generated the gross sales proceeds. The VAT balance is recorded in other payables on the balance sheets. | Value added taxes The Company is subject to VAT at a rate of 17% on proceeds received from customers, and are entitled to a refund for VAT already paid or borne on the goods purchased by it that have generated the gross sales proceeds. The VAT balance is recorded in other payables on the balance sheets. |
Income Taxes [Policy Text Block] | 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. | 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. |
Segment Information [Policy Text Block] | Segment Information The standard, “Disclosures about Segments of an Enterprise and Related Information,” codified with ASC 280, requires certain financial and supplementary information to be disclosed on an annual and interim basis for each reportable segment of an enterprise. The Company believes that it operates in one business segment (research, development, production, marketing and sales) and in one geographical segment (China), as all of the Company’s current operations are carried out in China. | |
Comprehensive Loss [Policy Text Block] | 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. | 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 [Policy Text Block] | 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 6.8900 and 6.6371 as of April 30, 2017 and July 31, 2016, respectively; stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period, which is 6.8141 and 6.4407 for the nine months ended April 30, 2017 and April 30, 2016. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. 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 7.7779 and 7.7588 as of April 30, 2017 and July 31, 2016, respectively; stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period, which is 7.7599 and 7.7591 the nine months ended April 30, 2017 and April 30, 2016, respectively. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. | 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 6.6371 and 6.2097 as of July 31, 2016 and 2015, respectively; stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period, which is 6.4798 and 6.1884 for the years ended July 31, 2016 and 2015, respectively. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. For the purpose of presenting these financial statements of the subsidiary in Hong Kong, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, which is 7.7588 and 7.7514 as of July 31, 2016 and 2015, respectively; stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period, which is 7.7595 and 7.7536 for the years ended July 31, 2016 and 2015, respectively. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. |
Earnings (Loss) per Share [Policy Text Block] | Earnings (Loss) per Share Basic earnings per share are 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 excludes all potential dilutive shares of common stock if their effect is anti-dilutive. There were no potential dilutive securities at April 30, 2017 or April 30, 2016. | 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 excludes all potential dilutive shares of common stock if their effect is anti-dilutive. There were no potential dilutive securities at July 31, 2016 and 2015. |
Related Parties [Policy Text Block] | Related Parties A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. | |
Recent Accounting Pronouncements [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for us in our first quarter of fiscal 2018 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09 (full retrospective method); or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09 (modified retrospective method). We are currently assessing the impact to our consolidated financial statements, and have not yet selected a transition approach. 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 July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under existing standards, the market amount requires consideration of replacement cost, net realizable value (NRV), and NRV less an approximately normal profit margin. The new ASU replaces market with NRV, defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or NRV less an approximately normal profit margin when measuring inventory. 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 impacts on the Company’s consolidated results of operations and financial condition. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): The amendments in this Update apply to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The amendments in this Update provide guidance on the following eight specific cash flow issues. The amendments are an improvement to GAAP because they provide guidance for each of the eight issues, thereby reducing the current and potential future diversity in practice described above. ASU 2016-15 is effective for the Company for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is still evaluating the effect that this guidance will have on the Company’s consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): “Restricted Cash”(“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The adoption of this guidance will result in the inclusion of the restricted cash balances within the overall cash balance and removal of the changes in restricted cash activity, which are currently recognized in Other financing activities, on the Statements of Consolidated Cash Flows. Furthermore, an additional reconciliation will be required to reconcile Cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to sum to the total shown in the Statements of Consolidated Cash Flows. The Company anticipates adopting this new guidance effective January 1, 2018. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. 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. | Recent Accounting Pronouncements In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under existing standards, the market amount requires consideration of replacement cost, net realizable value (NRV), and NRV less an approximately normal profit margin. The new ASU replaces market with NRV, defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or NRV less an approximately normal profit margin when measuring inventory. 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 impacts on the Company’s consolidated results of operations and financial condition. 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. 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 SUM23
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
Schedule of Variable Interest Entities [Table Text Block] | April 30, July 31, 2017 2016 (Unaudited) Total assets $ 16,523,294 $ 16,566,891 Total liabilities 9,051,307 7,944,737 For the nine For the nine months months Ended ended April 30, April 30, 2017 2016 (Unaudited) (Unaudited) Net loss $ 842,907 $ 223,651 | July 31, July 31, 2016 July 31, 2015 2014 Total assets $ 16,566,891 $ 20,948,502 $ 26,927,076 Total liabilities 7,944,737 11,457,633 17,610,720 For the year For the year year ended ended ended July 31, July 31, July 31, 2016 2015 2014 Net income (loss) $ (263,796 ) $ 165,029 $ (455,727 ) |
Schedule of Useful Lives of Property, Plant and Equipment [Table Text Block] | Classification Estimated useful life Machinery equipment 5 - 10 years Computer and office equipment 3 years Vehicle 5 years Property under capital lease 20 years | Classification Estimated useful life Machinery equipment 5 - 10 years Computer and office equipment 3 years Vehicle 5 years Property under capital lease 20 years |
ADVANCES TO SUPPLIERS (Tables)
ADVANCES TO SUPPLIERS (Tables) | 9 Months Ended |
Apr. 30, 2017 | |
Schedule of Advances to Suppliers [Table Text Block] | April 30, July 31, 2017 2016 (Unaudited) Advances to suppliers $ 3,539,296 $ 4,594,299 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
Inventories [Table Text Block] | April 30, July 31, 2017 2016 (Unaudited) Raw materials $ 2,266,001 $ 1,151,708 Accessory parts 767,021 929,145 Contracts work in progress 258,928 - Total $ 3,291,950 $ 2,080,853 | July 31, July 31, July 31, 2016 2015 2014 Raw materials $ 1,151,708 $ 365,248 $ 115,839 Accessory parts 929,145 848,887 635,708 Work in process - 249,721 391,179 Total $ 2,080,853 $ 1,463,856 $ 1,142,726 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
Property, Plant and Equipment [Table Text Block] | April 30, July 31, 2017 2016 (Unaudited) Machinery equipment $ 4,903,364 $ 4,951,227 Computer and office equipment 65,948 53,933 Vehicle 66,793 69,339 Total property, plant and equipment 5,036,105 5,074,499 Less: accumulated depreciation (745,738 ) (553,764 ) Total $ 4,290,367 $ 4,520,735 | July 31, July 31, July 31, 2016 2015 2014 Machinery equipment $ 4,951,227 $ 5,275,080 $ 3,997,506 Computer and office equipment 53,933 56,558 59,316 Vehicle 69,339 74,111 38,558 Property under capital lease - 2,759,547 2,756,573 Total property, plant and equipment 5,074,499 8,165,296 6,851,953 Less: accumulated depreciation (553,764 ) (485,973 ) (72,697 ) Total $ 4,520,735 $ 7,679,323 $ 6,779,256 |
BILLINGS IN EXCESS OF COSTS (Ta
BILLINGS IN EXCESS OF COSTS (Tables) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
Billings in Excess of Costs [Table Text Block] | April 30, July 31, 2017 2016 (Unaudited) Costs incurred on uncompleted contracts $ 1,444,069 $ 853,787 Billings to date (1,168,360 ) (143,135 ) $ 275,709 $ 710,652 Included in the accompanying balance sheets as follows: Costs in excess of billings on uncompleted contracts $ 1,172,900 $ 710,652 Billings on uncompleted contracts in excess of costs (897,191 ) - $ 275,709 $ 710,652 | July 31, July 31, 2016 July 31, 2015 2014 Costs incurred on uncompleted contracts $ 853,787 $ 2,033,840 $ 7,863,873 Billings to date (143,135 ) (5,523,616 ) (11,710,958 ) $ 710,652 $ (3,489,776 ) $ (3,847,085 ) Included in the accompanying balance sheets as follows: Costs in excess of billings on uncompleted contracts $ 710,652 $ - $ - Billings on uncompleted contracts in excess of costs - (3,489,776 ) (3,847,085 ) $ 710,652 $ (3,489,776 ) $ (3,847,085 ) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
Related Party Transactions [Table Text Block] | April 30, July 31, 2017 2016 (Unaudited) Rental fees: LuckSky Group 360,021 280,304 Sanhe Dong Yi (Capital lease payable) 237,028 246,060 Xianning Lucksky 60,453 - Prepaid expenses on behalf of the company: Zhou Deng Rong 1,634,840 1,190,370 Xianning Lucksky 18,902 - Borrowings: Xianning Lucksky $ 21,771 $ - Total $ 2,333,015 $ 1,716,734 | July 31, July 31, 2016 July 31, 2015 2014 Rental fees: LuckSky Group 280,304 166,443 33,253 Sanhe Dong Yi (Capital lease payable) $ 246,060 $ 262,996 $ 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 1,190,370 627,129 354,112 Total $ 1,716,734 $ 1,056,568 $ 3,080,147 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | April 30, July 31, 2016 2017 (Unaudited) Deferred tax assets: Net operating losses $ 377,676 $ 228,278 Total deferred tax assets 377,676 228,278 Less: valuation allowance (377,676 ) (228,278 ) Deferred tax assets, net $ - $ - | 2016 2015 2014 Deferred tax assets: Net operating losses $ 228,278 $ 78,278 $ 170,552 Total deferred tax assets 228,278 78,278 170,552 Less: valuation allowance (228,278 ) (78,278 ) (170,552 ) Deferred tax assets, net $ - $ - $ - |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | For the Nine For the Nine months months Ended ended April 30, April 30, 2017 2016 (Unaudited) (Unaudited) Current tax expense $ 99,636 $ 302,482 Deferred tax expense (88,194 ) (80,121 ) Tax expense (benefit) $ 11,442 $ 222,361 | For the For the For the year year year ended July 31, ended ended 2014 July 31, July 31, 2016 2015 Current tax expense $ 196,099 $ 833,452 $ - Deferred tax expense 30,583 83,388 - Benefits of operating loss carryforwards - - (113,932 ) Tax expense (benefit) $ 226,682 $ 916,840 $ (113,932 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the Nine For the Nine months months ended ended April 30, April 30, 2017 2016 (Unaudited) (Unaudited) Statutory U.S. tax rate 34.00% 34.00% PRC Statutory Tax Rate 25.00% 25.00% HK Statutory Tax Rate 15.00% 15.00% Permanent Difference ( 8.12% ) 178.91% Less: Valuation Allowance ( 75.20% ) 101.47% Deferred Tax 8.25% - Tax expense (benefit) ( 1.07% ) 354.38% | For the For the year For the year year ended ended ended July 31, July 31, July 31, 2016 2015 2014 Statutory U.S. tax rate 34.00% 34.00% 34.00% PRC Statutory Tax Rate 25.00% 25.00% 25.00% HK Statutory Tax Rate 15.00% 15.00% 15.00% Less: Valuation Allowance (92.85% ) (45.44% ) (59.67% ) Nondeductible/nontaxable items (40.57% ) 29.40% - Tax expense (benefit) (59.42% ) 57.96% 14.33% |
Schedule of Effective Income Tax Expense Reconciliation [Table Text Block] | For the For the year For the year year ended ended ended July 31, July 31, July 31, 2016 2015 2014 Statutory U.S. tax rate $ (228,278 ) $ (78,278 ) $ (170,552 ) PRC Statutory Tax Rate 71,923 451,874 (113,932 ) HK Statutory Tax Rate (185 ) (252 ) (675 ) Less: Valuation Allowance 228,463 464,966 171,227 Nondeductible/nontaxable items 154,759 75,530 - Tax expense (benefit) $ 226,682 $ 916,840 $ (113,932 ) | |
Subsidiaries in PRC [Member] | ||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | April 30, July 31, 2016 2017 (Unaudited) Deferred tax assets: - - Net operating losses $ - $ - Total deferred tax assets Less: valuation allowance - - Deferred tax assets, net $ - $ - Deferred tax liabilities: Timing differences of revenue recognition $ 16,437 $ 107,609 Total deferred tax liabilities 16,437 107,609 | 2016 2015 2014 Deferred tax assets: Net operating losses $ - $ - $ 111,844 Total deferred tax assets - - 111,844 Less: valuation allowance - - - Deferred tax assets, net $ - $ - $ 111,844 Deferred tax liabilities: Timing differences of revenue recognition $ 107,609 $ 83,101 $ - Total deferred tax liabilities 107,609 83,101 - |
COMMITMENTS, CONTINGENCIES, R30
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES (Tables) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
Commitments, Contingencies, Risks and Uncertainties [Table Text Block] | Year ending July 31, 2017 50,153 Year ending July 31, 2018 200,611 Year ending July 31, 2019 120,007 Year ending July 31, 2020 120,007 After 2020 450,026 Total $ 940,804 | Year ending July 31, 2017 124,580 Year ending July 31, 2018 124,580 Year ending July 31, 2019 124,580 Year ending July 31, 2020 124,580 After 2020 467,174 Total $ 965,494 |
QUARTERLY DATA (UNAUDITED) (Tab
QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Condensed Income Statement [Table Text Block] | First Second Third Fourth Year 2016 Quarter Quarter Quarter Quarter 2016 Revenue $ 66,610 $ 2,510 $ 8,940,206 $ 1,830,629 $ 10,839,955 Cost of sales 62,015 1,528 7,957,023 1,622,237 9,642,803 Net income (loss) after taxes (212,343 ) (225,991 ) 278,719 (448,569 ) (608,184 ) Net earnings (loss) per common share – basic and diluted (0.00 ) (0.00 ) (0.00 ) (0.00 ) (0.00 ) | First Second Third Fourth Year 2015 Quarter Quarter Quarter Quarter 2015 Revenue $ - $ - $ 1,133,522 $ 19,638,506 $ 20,772,028 Cost of sales - - 938,674 16,842,337 17,781,011 Net income (loss) after taxes (304,418 ) (362,275 ) (24,206 ) 1,348,359 657,460 Net earnings (loss) per common share – basic and diluted (0.00 ) (0.00 ) (0.00 ) 0.00 0.00 |
NATURE OF OPERATIONS (Narrative
NATURE OF OPERATIONS (Narrative) (Details) - USD ($) | May 01, 2012 | Jul. 31, 2014 | Jul. 25, 2014 | Sep. 23, 2013 | Sep. 15, 2013 | Apr. 30, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | May 15, 2012 |
Shares issued | 591,042,000 | 591,042,000 | 591,042,000 | ||||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | $ 10 | ||||||||
Stock Issued During Period, Shares, Acquisitions | 250,000,000 | ||||||||
Percentage of Common Stock Issued and Outstanding | 51.40% | 51.40% | |||||||
Mr. Zhou Jian [Member] | |||||||||
Equity Method Investment Ownership Percentage | 97.00% | ||||||||
Stock Issued During Period, Shares, Acquisitions | 264,850,740 | ||||||||
Mr. Zhou Deng Rong [Member] | |||||||||
Equity Method Investment Ownership Percentage | 3.00% | ||||||||
Stock Issued During Period, Shares, Acquisitions | 8,191,260 | ||||||||
Lucksky Hong Kong Shares Limited [Member] | |||||||||
Stock Issued During Period, Shares, Acquisitions | 250,000,000 | ||||||||
Percentage of Common Stock Issued and Outstanding | 100.00% | ||||||||
Luck Sky International Investment Holding Limited [Member] | |||||||||
Ownership Percentage | 90.00% | ||||||||
Shares issued | 7,200,000 | ||||||||
Shares Purchased Value | $ 235,000 |
BASIS OF PRESENTATION AND SUM33
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended | ||||
Jul. 31, 2016USD ($) | Jul. 31, 2015USD ($) | Apr. 30, 2017 | Apr. 30, 2016 | Jul. 25, 2014 | |
Percentage of VAT, Proceeds Received from Customers | 17.00% | 17.00% | |||
Percentage Of Service Fees Payable | 100.00% | ||||
Percentage-of Completion Method [Member] | |||||
Gross Revenue Recognized | $ 874,510 | $ 0 | |||
Completed-Contract Method [Member] | |||||
Gross Revenue Recognized | $ 9,997,255 | $ 20,829,309 | |||
Subsidiaries in PRC [Member] | |||||
Foreign Currency Exchange Rate, Translation | 6.6371 | 6.2097 | 6.8900 | ||
Foreign Currency Weighted Average Exchange Rate, Translation | 6.4798 | 6.1884 | 6.8141 | 6.4407 | |
Subsidiaries in Hong Kong [Member] | |||||
Foreign Currency Exchange Rate, Translation | 7.7588 | 7.7514 | 7.7779 | ||
Foreign Currency Weighted Average Exchange Rate, Translation | 7.7595 | 7.7536 | 7.7599 | 7.7591 |
GOING CONCERN (Narrative) (Deta
GOING CONCERN (Narrative) (Details) - USD ($) | Apr. 30, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 |
Accumulated deficit | $ 1,893,532 | $ 812,935 | $ 204,751 | $ 862,211 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||||
Jul. 25, 2014shares | May 30, 2014USD ($) | May 30, 2014HKD | Sep. 24, 2013USD ($)$ / sharesshares | Sep. 23, 2013USD ($)$ / sharesshares | Sep. 15, 2013shares | Jul. 31, 2014shares | Apr. 30, 2017 | |
Common Stock [Member] | ||||||||
Stock Issued During Period, Shares, Acquisitions | 273,042,000 | |||||||
Stock Issued During Period, Shares, Acquisitions | 250,000,000 | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 250,000,000 | |||||||
Sale of Stock, Price Per Share | $ / shares | $ 0.001 | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ | $ 250,000 | |||||||
Percentage Of Common Stock Shares Issued And Outstanding | 46.20% | |||||||
Luck Sky (Hong Kong) Shares Limited [Member] | ||||||||
Stock Issued During Period, Shares, Acquisitions | 250,000,000 | |||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 41.00% | |||||||
Luck Sky (Hong Kong) Aerodynamic Electricity Limited [Member] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | 100.00% | ||||||
Business Combination, Consideration Transferred, Total | $ 1,289.98 | HKD 10,000 | ||||||
Sanhe Keilitai [Member] | ||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 95.00% | |||||||
24 Shareholders [Member] | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 250,000,000 | |||||||
Sale of Stock, Price Per Share | $ / shares | $ 0.001 | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ | $ 250,000 | |||||||
Mr. Zhou Jian [Member] | ||||||||
Stock Issued During Period, Shares, Acquisitions | 264,850,740 | |||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 97.00% | |||||||
Mr. Zhou Deng Rong [Member] | ||||||||
Stock Issued During Period, Shares, Acquisitions | 8,191,260 | |||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 3.00% |
PROPERTY, PLANT AND EQUIPMENT36
PROPERTY, PLANT AND EQUIPMENT (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Depreciation | $ 214,664 | $ 201,090 | $ 266,773 | $ 414,623 | $ 74,053 |
General and Administrative Expense [Member] | |||||
Depreciation | 198,979 | 18,525 | 65,107 | 162,150 | 35,812 |
Construction in Progress [Member] | |||||
Depreciation | $ 15,685 | $ 182,565 | $ 201,666 | $ 252,473 | $ 38,241 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2014USD ($) | Sep. 30, 2014CNY (¥) | May 30, 2014USD ($) | May 30, 2014HKD | Apr. 30, 2017USD ($) | Apr. 30, 2017CNY (¥) | Jul. 31, 2016USD ($) | Jul. 31, 2016CNY (¥) | Jul. 31, 2015USD ($) | Jul. 31, 2016CNY (¥) | Nov. 27, 2015USD ($) | Apr. 25, 2015USD ($) | Apr. 25, 2015CNY (¥) | Jul. 31, 2014USD ($) | Apr. 10, 2014 | Sep. 23, 2013USD ($) | Sep. 15, 2013 | |
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 250,000 | ||||||||||||||||
Costs in Excess of Billings | $ 1,444,069 | $ 853,787 | $ 2,033,840 | $ 7,863,873 | |||||||||||||
Contract Receivable | 143,135 | 5,523,616 | 11,710,958 | ||||||||||||||
Due from Related Parties, Current | 72,569 | 0 | 611,879 | 638,926 | |||||||||||||
Due to Related Parties, Current | 84,180 | 0 | 18,934 | 18,934 | |||||||||||||
Rent Expense | 81,924 | ¥ 555,360 | |||||||||||||||
93KW PV panel installations [Member] | |||||||||||||||||
Contract Receivable | 18,109 | ||||||||||||||||
Contract Revenue Cost | 32,656 | ||||||||||||||||
365KW PV panel installations [Member] | |||||||||||||||||
Contract Receivable | 68,974 | ||||||||||||||||
Contract Revenue Cost | 68,974 | ||||||||||||||||
75KW PV panel installations [Member] | |||||||||||||||||
Contract Receivable | 14,514 | ||||||||||||||||
Contract Revenue Cost | 67,126 | ||||||||||||||||
Xianning Lucksky | |||||||||||||||||
Construction Revenue | 90,310 | ||||||||||||||||
Contract Revenue Cost | 80,617 | ||||||||||||||||
Short-term Debt | 21,771 | 0 | |||||||||||||||
Accrued Rent, Current | 60,453 | 0 | |||||||||||||||
Prepaid expenses on behalf of the company | 18,902 | 0 | |||||||||||||||
Zhou Jian [Member] | |||||||||||||||||
Short-term Debt | 145,138 | ||||||||||||||||
Sanhe Dong Yi Glass Machine Company Limited [Member] | |||||||||||||||||
Prepaid Rent | 3,965 | ¥ 12,000 | |||||||||||||||
Payments to Acquire Furniture and Fixtures | $ 1,487 | ¥ 9,000 | |||||||||||||||
Short-term Debt | 0 | 0 | 160,865 | ||||||||||||||
Kelitai Air Powered Machinery Co Ltd [Member] | |||||||||||||||||
Short-term Debt | $ 507,917 | ¥ 3,150,000 | |||||||||||||||
Short-term Debt, Percentage Bearing Fixed Interest Rate | 5.00% | 5.00% | |||||||||||||||
Prepaid expenses on behalf of the company | 0 | 0 | 1,510 | ||||||||||||||
Kelitai Air Powered Machinery Co Ltd [Member] | Loan Agreement [Member] | |||||||||||||||||
Due from Related Parties, Current | 0 | 32,208 | |||||||||||||||
Kelitai Air Powered Machinery Co Ltd [Member] | Construction Loans [Member] | |||||||||||||||||
Construction Revenue | 811,197 | ||||||||||||||||
Contract Revenue Cost | 730,141 | ||||||||||||||||
Due from Related Parties, Current | 579,671 | ||||||||||||||||
Xiangtian Keliitai [Member] | |||||||||||||||||
Due from Related Parties, Current | $ 15,209 | ||||||||||||||||
Directors [Member] | |||||||||||||||||
Due to Related Parties, Noncurrent | 415,652 | 414,876 | 417,770 | 430,928 | |||||||||||||
Zhou Deng Rong [Member] | |||||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 70.00% | ||||||||||||||||
Prepaid expenses on behalf of the company | 1,634,840 | 1,190,370 | 627,129 | 354,112 | |||||||||||||
LuckSky Group [Member] | |||||||||||||||||
Short-term Debt | 0 | 0 | 1,242,198 | ||||||||||||||
Accrued Rent, Current | 360,021 | 280,304 | 166,443 | 33,253 | |||||||||||||
Lucksky Hong Kong Shares Limited [Member] | |||||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 41.00% | ||||||||||||||||
Luck Sky Hong Kong Aerodynamic Electricity Limited [Member] | |||||||||||||||||
Business Combination, Consideration Transferred, Total | $ 1,289.98 | HKD 10,000 | |||||||||||||||
Costs in Excess of Billings | 8,705,527 | ||||||||||||||||
Contract Receivable | 7,752,526 | ||||||||||||||||
Construction Revenue | 8,705,527 | ||||||||||||||||
Contract Revenue Cost | 7,752,526 | ||||||||||||||||
Luck Sky Hong Kong Aerodynamic Electricity Limited [Member] | 3MW PV panel installations [Member] | |||||||||||||||||
Construction Revenue | 2,822,199 | ||||||||||||||||
Contract Revenue Cost | 2,366,177 | ||||||||||||||||
Luck Sky Hong Kong Aerodynamic Electricity Limited [Member] | 4MW PV panel installations [Member] | |||||||||||||||||
Contract Receivable | 1,066,763 | ||||||||||||||||
Contract Revenue Cost | $ 169,572 | ||||||||||||||||
Sanhe Keilitai [Member] | |||||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 95.00% | ||||||||||||||||
Short-term Debt | $ 72,569 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.45% | ||||||||||||||||
Interest Income, Related Party | $ 1,112 | ||||||||||||||||
Office And Factory [Member] | |||||||||||||||||
Rental Income, Nonoperating | 102,855 | 697,248 | 105,053 | ¥ 697,248 | |||||||||||||
Office And Factory [Member] | Sanhe Dong Yi Glass Machine Company Limited [Member] | |||||||||||||||||
Payments for Rent | ¥ | 306,500 | 1,306,500 | |||||||||||||||
Accrued Rent, Current | 237,028 | 246,060 | $ 262,996 | $ 52,542 | |||||||||||||
Dormitory [Member] | |||||||||||||||||
Rental Income, Nonoperating | $ 19,118 | ¥ 129,600 | 19,527 | 129,600 | |||||||||||||
Agricultural Land [Member] | |||||||||||||||||
Payments for Rent | $ 5,200 | ¥ 34,510 |
GOVERNMENT CONTRIBUTION PLAN (N
GOVERNMENT CONTRIBUTION PLAN (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Apr. 30, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 127,279 | $ 92,134 | $ 62,846 | $ 22,098 |
STATUTORY RESERVE (Narrative) (
STATUTORY RESERVE (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
Foreign Tax Authority [Member] | ||
Statutory Surplus Reserve Fund Percentage | 10.00% | 10.00% |
Registered Capital Appropriation Percentage | 50.00% | 50.00% |
CHINA [Member] | ||
Statutory Surplus Reserve Fund Percentage | 10.00% | 10.00% |
Registered Capital Appropriation Percentage | 50.00% | 50.00% |
CAPITAL STOCK AND EQUITY TRAN40
CAPITAL STOCK AND EQUITY TRANSACTIONS (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Jul. 24, 2015 | Jul. 25, 2014 | Sep. 23, 2013 | Jul. 31, 2010 | Jul. 31, 2009 | Apr. 30, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Common Stock Shares Authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||
Common Stock Par Or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Stock Issued During Period, Shares, New Issues | 3,000,000 | 5,000,000 | ||||||
Stock Issued During Period, Value, New Issues | $ 30,000 | $ 25,000 | ||||||
Stock Issued During Period, Shares, Acquisitions | 250,000,000 | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 250,000,000 | |||||||
Business Acquisition Percentage Of Issued And Outstanding Shares | 51.40% | |||||||
Sale of Stock, Price Per Share | $ 0.001 | |||||||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Preferred Stock Par Or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Zhou Jian [Member] | ||||||||
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] | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 8,191,260 | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 3.00% | |||||||
Non Related Party [Member] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 7,000,000 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 7,000,000 | |||||||
Secondary Offering [Member] | ||||||||
Sale of Stock, Price Per Share | $ 0.001 | |||||||
Stock Issued During Period, Shares, Issued for Services | 67,000,000 | |||||||
Stock Issued During Period, Value, Issued for Services | $ 67,000 | |||||||
Exchange of Stock for Stock [Member] | ||||||||
Stock Issued During Period, Shares, Acquisitions | 250,000,000 | |||||||
Chief Financial Officer [Member] | ||||||||
Sale of Stock, Price Per Share | $ 0.001 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 60,000,000 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% | ||
Operating Loss Carryforwards | $ 1,110,812 | $ 1,110,812 | $ 1,403,259 | ||||
Net income (loss) before taxes | (37,284) | $ 574,158 | (1,069,155) | $ 62,746 | (381,502) | $ 1,574,300 | $ (795,126) |
Income Tax Expense (Benefit) | $ 71,372 | $ 295,439 | $ 11,442 | $ 222,361 | $ 226,682 | $ 916,840 | $ (113,932) |
CHINA [Member] | |||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | ||
HONG KONG [Member] | |||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||
Luck Sky Shenzhen [Member] | |||||||
Net income (loss) before taxes | $ 141,353 | $ 370,215 | $ 432,088 | $ 963,727 | $ (6,283) | ||
Income Tax Expense (Benefit) | $ 47,118 | $ 92,553 | $ 108,022 | $ 239,383 | |||
Sanhe [Member] | |||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 25.00% | 25.00% | |||||
Net income (loss) before taxes | $ 842,907 | $ 145,136 |
COMMITMENTS, CONTINGENCIES, R42
COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES (Narrative) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jul. 24, 2015 | Sep. 23, 2013 | Apr. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Capital Lease Obligations | $ 15,764,399 | $ 9,247,569 | $ 17,697,627 | $ 27,777,872 | |||
Operating Leases, Rent Expense, Net | $ 152,134 | $ 96,284 | $ 127,835 | $ 344,736 | $ 89,760 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 67,000,000 | ||||||
Sale of Stock, Price Per Share | $ 0.001 | ||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 67,000 | ||||||
Earnings Per Share, Diluted | $ 0 | $ 0 | |||||
Chief Financial Officer [Member] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 60,000,000 | ||||||
Sale of Stock, Price Per Share | $ 0.001 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 60,000,000 | ||||||
Non-Related Parties [Member] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 7,000,000 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 7,000,000 |
Schedule of Variable Interest E
Schedule of Variable Interest Entities (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Total assets | $ 16,523,294 | $ 16,566,891 | $ 20,948,502 | $ 26,927,076 | |
Total liabilities | 9,051,307 | 7,944,737 | 11,457,633 | 17,610,720 | |
Net loss | $ 842,907 | $ 223,651 | $ (263,796) | $ 165,029 | $ (455,727) |
Schedule of Useful Lives of Pro
Schedule of Useful Lives of Property, Plant and Equipment (Details) | 9 Months Ended | 12 Months Ended |
Apr. 30, 2017 | Jul. 31, 2016 | |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 10 years | 10 years |
Computer And Office Equipment [Member] | ||
Property, Plant and Equipment, Useful Life | 3 years | 3 years |
Vehicles [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | 5 years |
Property under capital lease [Member] | ||
Property, Plant and Equipment, Useful Life | 20 years | 20 years |
Schedule of Advances to Supplie
Schedule of Advances to Suppliers (Details) - USD ($) | Apr. 30, 2017 | Jul. 31, 2016 |
Advances to suppliers | $ 3,539,296 | $ 4,594,299 |
Inventories (Details)
Inventories (Details) - USD ($) | Apr. 30, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 |
Raw materials | $ 2,266,001 | $ 1,151,708 | $ 365,248 | $ 115,839 |
Accessory parts | 767,021 | 929,145 | 848,887 | 635,708 |
Work in process | 258,928 | 0 | 249,721 | 391,179 |
Total | $ 3,291,950 | $ 2,080,853 | $ 1,463,856 | $ 1,142,726 |
Property, Plant and Equipment47
Property, Plant and Equipment (Details) - USD ($) | Apr. 30, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 |
Total property, plant and equipment | $ 5,036,105 | $ 5,074,499 | $ 8,165,296 | $ 6,851,953 |
Less: accumulated depreciation | (745,738) | (553,764) | (485,973) | (72,697) |
Total | 4,290,367 | 4,520,735 | 7,679,323 | 6,779,256 |
Machinery and Equipment [Member] | ||||
Total property, plant and equipment | 4,903,364 | 4,951,227 | 5,275,080 | 3,997,506 |
Computer And Office Equipment [Member] | ||||
Total property, plant and equipment | 65,948 | 53,933 | 56,558 | 59,316 |
Vehicles [Member] | ||||
Total property, plant and equipment | $ 66,793 | 69,339 | 74,111 | 38,558 |
Property under capital lease [Member] | ||||
Total property, plant and equipment | $ 0 | $ 2,759,547 | $ 2,756,573 |
Billings in Excess of Costs (De
Billings in Excess of Costs (Details) - USD ($) | Apr. 30, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 |
Costs incurred on uncompleted contracts | $ 1,444,069 | $ 853,787 | $ 2,033,840 | $ 7,863,873 |
Billings to date | (1,168,360) | (143,135) | ||
Costs in Excess of Billing | 275,709 | 710,652 | ||
Included in the accompanying balance sheets as follows: | ||||
Costs in excess of billings on uncompleted contracts | 1,172,900 | 710,652 | 0 | 0 |
Billings on uncompleted contracts in excess of costs | $ (897,191) | $ 0 | (3,489,776) | (3,847,085) |
Billings in Excess of Cost | $ (3,489,776) | $ (3,847,085) |
Related Party Transactions (Det
Related Party Transactions (Details) | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2017USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2014USD ($) | Apr. 25, 2015USD ($) | Apr. 25, 2015CNY (¥) | |
Total | $ 2,333,015 | $ 1,716,734 | $ 1,056,568 | $ 3,080,147 | ||
LuckSky Group [Member] | ||||||
Rental fees | 360,021 | 280,304 | 166,443 | 33,253 | ||
Borrowings | 0 | 0 | 1,242,198 | |||
Sanhe Dong Yi Glass Machine Company Limited [Member] | ||||||
Rental fees (Capital lease interest payable) | 237,028 | 246,060 | 262,996 | 52,542 | ||
Borrowings | 0 | 0 | 160,865 | |||
Kelitai Air Powered Machinery Co Ltd [Member] | ||||||
Payments to Acquire Productive Assets | 0 | 0 | 1,235,667 | |||
Prepaid expenses on behalf of the company | 0 | 0 | 1,510 | |||
Borrowings | $ 507,917 | ¥ 3,150,000 | ||||
Zhou Deng Rong [Member] | ||||||
Prepaid expenses on behalf of the company | 1,634,840 | 1,190,370 | $ 627,129 | $ 354,112 | ||
Xianning Lucksky | ||||||
Rental fees | 60,453 | 0 | ||||
Prepaid expenses on behalf of the company | 18,902 | 0 | ||||
Borrowings | $ 21,771 | $ 0 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Apr. 30, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 |
Net operating losses | $ 377,676 | $ 228,278 | $ 78,278 | $ 170,552 |
Total deferred tax assets | 377,676 | 228,278 | 78,278 | 170,552 |
Less: valuation allowance | (377,676) | (228,278) | (78,278) | (170,552) |
Deferred tax assets, net | 0 | 0 | 0 | 0 |
Subsidiaries in PRC [Member] | ||||
Net operating losses | 0 | 0 | 0 | 111,844 |
Total deferred tax assets | 0 | 0 | 0 | 111,844 |
Less: valuation allowance | 0 | 0 | 0 | 0 |
Deferred tax assets, net | 0 | 0 | 0 | 111,844 |
Timing differences of revenue recognition | 16,437 | 107,609 | 83,101 | 0 |
Total deferred tax liabilities | $ 16,437 | $ 107,609 | $ 83,101 | $ 0 |
Schedule of Components of Incom
Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Current tax expense | $ 99,636 | $ 302,482 | $ 196,099 | $ 833,452 | $ 0 | ||
Deferred tax expense | (88,194) | (80,121) | 30,583 | 83,388 | 0 | ||
Benefits of operating loss carryforwards | 0 | 0 | (113,932) | ||||
Income Tax Expense (Benefit) | $ 71,372 | $ 295,439 | $ 11,442 | $ 222,361 | $ 226,682 | $ 916,840 | $ (113,932) |
Schedule of Effective Income Ta
Schedule of Effective Income Tax Rate Reconciliation (Details) | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% |
Permanent Difference | (8.12%) | 178.91% | |||
Less: Valuation Allowance | (75.20%) | 101.47% | (92.85%) | (45.44%) | (59.67%) |
Nondeductible/nontaxable items | (40.57%) | 29.40% | 0.00% | ||
Deferred Tax | 8.25% | 0.00% | |||
Tax expense (benefit) | (1.07%) | 354.38% | (59.42%) | 57.96% | 14.33% |
CHINA [Member] | |||||
Statutory Tax Rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
HONG KONG [Member] | |||||
Statutory Tax Rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% |
Schedule of Effective Income 53
Schedule of Effective Income Tax Expense Reconciliation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Statutory U.S. tax rate | $ (228,278) | $ (78,278) | $ (170,552) | ||||
Less: Valuation Allowance | 228,463 | 464,966 | 171,227 | ||||
Nondeductible/nontaxable items | 154,759 | 75,530 | 0 | ||||
Income Tax Expense (Benefit) | $ 71,372 | $ 295,439 | $ 11,442 | $ 222,361 | 226,682 | 916,840 | (113,932) |
CHINA [Member] | |||||||
Statutory Tax Rate | 71,923 | 451,874 | (113,932) | ||||
HONG KONG [Member] | |||||||
Statutory Tax Rate | $ (185) | $ (252) | $ (675) |
Commitments, Contingencies, R54
Commitments, Contingencies, Risks and Uncertainties (Details) - USD ($) | Apr. 30, 2017 | Jul. 31, 2016 |
Year ending July 31, 2017 | $ 50,153 | $ 124,580 |
Year ending July 31, 2018 | 200,611 | 124,580 |
Year ending July 31, 2019 | 120,007 | 124,580 |
Year ending July 31, 2020 | 120,007 | 124,580 |
After 2,020 | 450,026 | 467,174 |
Total | $ 940,804 | $ 965,494 |
Condensed Income Statement (Det
Condensed Income Statement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2016 | Jul. 31, 2015 | |
Revenue | $ 1,830,629 | $ 8,940,206 | $ 2,510 | $ 66,610 | $ 19,638,506 | $ 1,133,522 | $ 0 | $ 0 | $ 10,839,955 | $ 20,772,028 |
Cost of sales | 1,622,237 | 7,957,023 | 1,528 | 62,015 | 16,842,337 | 938,674 | 0 | 0 | 9,642,803 | 17,781,011 |
Net income | $ (448,569) | $ 278,719 | $ (225,991) | $ (212,343) | $ 1,348,359 | $ (24,206) | $ (362,275) | $ (304,418) | $ (608,184) | $ 657,460 |
Net (loss) income per common share - basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |