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Property, Plant and Equipment, net
 12 Months Ended
Sep. 30, 2013
Property, Plant and Equipment, net [Text Block]
7.

Property, Plant and Equipment, net

   
 

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

      2012     2013  
  Buildings $ 115,034,342   $ 152,128,751  
  Machinery and equipment   168,947,314     125,617,004  
  Office equipment   2,624,137     2,520,480  
  Motor vehicles   1,486,337     1,722,492  
      288,092,130     281,988,727  
  Accumulated depreciation   (102,766,292 )   (123,715,978 )
  Construction in progress   51,714,066     11,321,396  
  Prepayment for acquisition of property, plant and equipment   1,717,991     558,013  
  Carrying amount $ 238,757,895   $ 170,152,158  

  (i)

Depreciation expense for the years ended September 30, 2012 and 2013 is included in the consolidated statements of operations as follows:

      2012     2013  
  Cost of revenues $ 13,551,240   $ 14,666,041  
  Research and development expenses   604,223     470,681  
  Sales and marketing expenses   172,189     132,312  
  General and administrative expenses   3,316,192     3,034,542  
              $ 17,643,844   $ 18,303,576  
  (ii)

Construction in progress
     
   

Construction in progress as of September 30, 2013 was mainly comprised of capital expenditures for the automation production line of BAK Tianjin.
     
   

Construction in progress as of September 30, 2012 was mainly comprised of capital expenditures for construction of the Company's Research and Development Test Centre in Shenzhen, the construction of which was completed in July 2013 when the carrying amount of the related construction in progress of $41,914,723 was transferred to property, plant and equipment. During the year, the Company leased out a substantial part of the Research and Development Test Centre to third party tenants, all for a period of five years, and recognized rental income of $0.43 million, as other income, for the year ended September 30, 2013. As of September 30, 2013, the Company had also received $715,398 in rental deposits from its tenants.

     
   

The following schedule provides an analysis of the Company's investment in property on operating leases by major classes as of September 30, 2013:

Buildings $ 32,718,634  

The following is a schedule by years of minimum future rentals on noncancelable operating leases as of September 30, 2013:

Year ending September 30,      
  2014 $ 3,809,156  
  2015   3,809,156  
  2016   3,777,192  
  2017   3,514,923  
  2018   3,067,519  
   Later years   9,367  
  $ 17,987,313  

   

For the years ended September 30, 2012 and 2013, the Company capitalized interest of $1,767,649 and $1,678,489 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 $3.9 million and $62.5 million for the years ended September 30, 2012 and 2013, respectively. The impairment charge represented the excess of carrying amounts of the Company's property, plant and equipment over the estimated fair value of the Company's production facilities in Shenzhen primarily for the production of aluminum-case cells and lithium polymer cells and Tianjin primarily for the production of high-power lithium batteries.