Income Taxes (Tables)
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12 Months Ended |
May 31, 2026 |
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| Income Tax Disclosure [Abstract] |
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| Components of Provision for Income Taxes |
Significant components of provision for income taxes for the years ended May 31, 2024, 2025 and 2026 were as follows:
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For the years ended May 31, |
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2024 |
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2025 |
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2026 |
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US$ |
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US$ |
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US$ |
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| Current: |
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| PRC |
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130,927 |
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175,611 |
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204,197 |
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| Deferred: |
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| PRC |
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(21,237 |
) |
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(29,317 |
) |
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(8,086 |
) |
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| Total provision for income taxes |
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109,690 |
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146,294 |
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196,111 |
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| Components of Group's Deferred Tax Assets and Liabilities |
Significant components of the Group’s deferred tax assets and liabilities were as follows:
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As of May 31, |
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2025 |
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2026 |
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US$ |
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US$ |
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| Allowance for doubtful accounts |
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28,462 |
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30,043 |
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| Accrued expenses |
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77,786 |
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93,025 |
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| Net operating loss carry-forward |
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254,914 |
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231,187 |
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| Total deferred tax assets |
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361,162 |
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354,255 |
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| Less: valuation allowance |
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(263,230 |
) |
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(248,984 |
) |
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| Total deferred tax assets, net |
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97,932 |
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105,271 |
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| Deferred tax liabilities |
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| Acquired assets |
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2,557 |
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1,764 |
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| Tax impact from the unrealized gain on long-term investments |
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11,617 |
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12,330 |
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| Total deferred tax liabilities |
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14,174 |
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14,094 |
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| Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates |
A reconciliation of the provision for income taxes computed by applying the PRC EIT rates of 25% for the years ended May 31, 2024 and 2025 to income before provision for income tax and the actual provision for income tax is as follows:
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For the years ended May 31, |
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2024 |
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2025 |
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US$ |
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|
US$ |
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| Income before income taxes and loss from equity method investments |
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493,841 |
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536,384 |
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| PRC statutory income tax rate |
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25 |
% |
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25 |
% |
| Income tax at statutory income tax rate |
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123,460 |
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134,096 |
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| Effect of non-deductible expenses and loss and super deduction expenses |
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68,741 |
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44,173 |
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| Effect of income tax exemptions and preferential tax rates |
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(24,810 |
) |
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(26,561 |
) |
| Effect of income tax rate difference in other jurisdictions |
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(9,086 |
) |
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(804 |
) |
| Changes in valuation allowance |
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(48,615 |
) |
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(4,610 |
) |
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| Provision for income taxes |
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109,690 |
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|
146,294 |
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| Upon adoption of ASU 2023-09, as described in Note 2, reconciliation of difference between the PRC statutory income tax rate and the Group’s effective income tax rate for the year ended May 31, 2026 is as follows:
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For the year ended
May 31, 2026 |
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Income before income taxes and loss from equity method investments |
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730,549 |
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Chinese mainland EIT rate |
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182,637 |
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25.0 |
% |
Other jurisdictions’ tax effects |
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(3,702 |
) |
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(0.5 |
)% |
Changes in valuation allowance |
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19,424 |
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2.6 |
% |
Non-taxable or non-deductible items |
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15,795 |
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2.2 |
% |
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8,048 |
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1.1 |
% |
| |
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Effect of R&D super-deduction |
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(9,408 |
) |
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(1.3 |
)% |
Effect on tax holiday and preferential tax treatment |
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(24,025 |
) |
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(3.3 |
)% |
| Others |
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7,342 |
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1.0 |
% |
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Effective tax rate for the Group |
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196,111 |
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