XML 168 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Property, Plant and Equipment, net
 9 Months Ended
Jun. 30, 2013
Property, Plant and Equipment, net [Text Block]

6. Property, Plant and Equipment, net

Property, plant and equipment as of September 30, 2012 and June 30, 2013 consisted of the following:

 

   September 30,     June 30,  

 

   2012     2013  
             

Buildings

 $ 115,034,342   $ 109,656,793  

Machinery and equipment

   168,947,314     169,080,905  

Office equipment

   2,624,137     2,684,619  

Motor vehicles

   1,486,337     1,558,291  

 

   288,092,130     282,980,608  

Accumulated depreciation

   (102,766,292 )   (119,372,034 )

Construction in progress

   51,714,066     58,978,490  

Prepayment for acquisition of property, plant and equipment

   1,717,991     2,618,700  

 

            

Carrying amount

 $ 238,757,895   $ 225,205,764  

(i) Depreciation expense for the three and nine months ended June 30, 2012 and 2013 is included in the condensed consolidated statements of comprehensive income as follows:

 

   Three months ended June 30,     Nine months ended June 30,  

 

   2012     2013     2012     2013  
                         

Cost of revenues

 $ 3,595,879   $ 3,634,836   $ 11,007,553   $ 11,029,359  

Research and development expenses

   154,984     92,751     444,769     373,167  

Sales and marketing expenses

   41,477     34,820     128,338     101,673  

General and administrative expenses

   846,951     873,826     2,486,428     2,490,275  

 

                        

 

 $ 4,639,291   $ 4,636,233   $ 14,067,088   $ 13,994,474  

(ii) Construction in Progress

Construction in progress mainly comprises capital expenditures for construction of the Company’s Research and Development Test Centre.

For the three months ended June 30, 2012 and 2013, the Company capitalized interest of $385,493 and $605,648 respectively to the cost of construction in progress.

For the nine months ended June 30, 2012 and 2013, the Company capitalized interest of $1,155,846 and $1,975,311 respectively to the cost of construction in progress.

(iii) Impairment charge

During the course of the Company’s strategic review of its operations, the Company assessed the recoverability of the carrying value of certain property, plant and equipment which resulted in impairment losses of $3.2 million and $14.6 million for the three and nine months ended June 30 2013, respectively, and of $3.6 million and $6.3 million for the three and nine months ended June 30, 2012, respectively. The impairment charge represented the excess of carrying amounts of the Company’s property, plant and equipment over the estimated discounted cash flows expected to be generated by the Company’s production facilities in Shenzhen primarily for the production of aluminum-case cells and lithium polymer cells.