XML 54 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
5. PROPERTY, PLANT AND EQUIPMENT, NET
 6 Months Ended
Jun. 30, 2013
Property, Plant and Equipment [Abstract]  
5. PROPERTY, PLANT AND EQUIPMENT, NET

NOTE 5 – PROPERTY, PLANT AND EQUIPMENT, NET

 

Property, plant and equipment, net consist of the following:

 

   

June 30,

2013

    

December 31,

2012

  
At cost:            
Mineral rights   $ 6,443,763     $ 6,334,277  
Buildings     51,785,222       50,905,337  
Plant and machinery     168,992,691       166,121,329  
Motor vehicles     9,298       9,140  
Furniture, fixtures and office equipment     4,859,614       4,777,044  
Total     232,090,588       228,147,127  
Less: Accumulated depreciation and amortization     (76,972,730 )     (62,204,585 )
Net book value   $ 155,117,858     $ 165,942,542  

 

The Company has certain buildings and salt pans erected on parcels of land located in Shouguang, PRC, and such parcels of land are collectively owned by local townships. The Company has not been able to obtain property ownership certificates over these buildings and salt pans as the Company could not obtain land use rights certificates on the underlying parcels of land. The aggregate carrying values of these properties situated on parcels of the land are $39,179,525 and $39,563,438 as at June 30, 2013 and December 31, 2012, respectively.

 

During the three-month period ended June 30, 2013, depreciation and amortization expense totaled $6,812,181, of which $6,504,164 and $308,017 were recorded as cost of net revenue and administrative expenses, respectively. During the three-month period ended June 30, 2012, depreciation and amortization expense totaled $5,521,178, of which $5,403,370 and $117,808 were recorded as cost of net revenue and administrative expenses, respectively. During the six-month period ended June 30, 2013, depreciation and amortization expense totaled $13,554,571, of which $12,758,306 and $796,264 were recorded as cost of sales and administrative expenses respectively. During the six-month period ended June 30, 2012, depreciation and amortization expense totaled $11,118,099, of which $10,645,703 and $472,396 were recorded as cost of sales and administrative expenses respectively.