XML 71 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
4. PROPERTY, PLANT AND EQUIPMENT, NET
 9 Months Ended
Sep. 30, 2014
Property, Plant and Equipment [Abstract]  
4. PROPERTY, PLANT AND EQUIPMENT, NET

 

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

 

    September 30, 2013   December 31, 2013
At cost:            
Mineral rights   $ 6,471,234     $ 6,530,158  
Buildings     52,862,086       53,343,419  
Plant and machinery     176,519,145       172,842,611  
Motor vehicles     9,338       9,423  
Furniture, fixtures and office equipment     4,858,389       4,902,627  
Total     240,720,192       237,628,238  
Less: Accumulated depreciation and amortization     (110,192,153 )     (91,227,802 )
Net book value   $ 130,528,039     $ 146,400,436  

 

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 $37,564,473 and $39,565,302 as at September 30, 2014 and December 31, 2013, respectively.

 

During the three-month period ended September 30, 2014, depreciation and amortization expense totaled $6,704,711, of which $6,189,046 and $515,665 were recorded as cost of net revenue and administrative expenses, respectively. During the three-month period ended September 30, 2013, depreciation and amortization expense totaled $6,794,439, of which $6,354,146 and $440,293 were recorded as cost of net revenue and administrative expenses, respectively. During the nine-month period ended September 30, 2014, depreciation and amortization expense totaled $20,336,460, of which $19,180,021 and $1,156,439 were recorded as cost of sales and administrative expenses respectively. During the nine-month period ended September 30, 2013, depreciation and amortization expense totaled $20,305,673, of which $19,069,116 and $1,236,557 were recorded as cost of sales and administrative expenses respectively.