Income Taxes (Tables)

12 Months Ended

May 31, 2023

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes

Significant components of provision for income taxes for the years ended May 31, 2021, 2022 and 2023 were as follows:

	For the years ended May 31,
	2021			2022		2023
	US$			US$		US$
Current:
PRC		127,313			44,378		97,594
Deferred:
PRC		(43,725	)		91,934		(31,528	)
Total provision for income taxes		83,588			136,312		66,066

Components of Group's Deferred Tax Assets and Liabilities

Significant components of the Group’s deferred tax assets and liabilities were as follows:

	As of May 31,
	2022			2023
	US$			US$
Deferred tax assets
Allowance for doubtful accounts		41,806			37,424
Accrued expenses		53,069			56,716
Net operating loss carry-forward		321,258			324,355
Tax impact from the long-term investments disposed to a related party		1,521			1,521
Total deferred tax assets		417,654			420,016
Less: valuation allowance		(397,616	)		(364,083	)
Total deferred tax assets, net		20,038			55,933
Deferred tax liabilities
Acquired assets		1,788			4,523
Tax impact from the unrealized gain on available-for-sale investments		17,452			19,326
Total deferred tax liabilities		19,240			23,849

Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates

A reconciliation of the provision for income taxes computed by applying the EIT rates of 25% for the years ended May 31, 2021, 2022 and 2023 to income/(loss) before provision for income tax and the actual provision for income tax is as follows:

	For the years ended May 31,
	2021			2022			2023
	US$			US$			US$
Income/(loss) before income taxes		314,977			(1,032,498	)		308,531
PRC statutory income tax rate		25	%		25	%		25	%
Income tax at statutory income tax rate		78,744			(258,125	)		77,133
Effect of non-deductible expenses and loss and super deduction expenses		(5,174	)		106,903			40,577
Effect of income tax exemptions and preferential tax rates		(38,795	)		(19,570	)		(12,927	)
Effect of income tax rate difference in other jurisdictions		(181	)		(424	)		(5,184	)
Changes in valuation allowance		48,994			307,528			(33,533	)
Provision for income taxes		83,588			136,312			66,066