XML 61 R11.htm IDEA: XBRL DOCUMENT v3.3.0.814
5. PROPERTY, PLANT AND EQUIPMENT, NET
 9 Months Ended
Sep. 30, 2015
Property, Plant and Equipment [Abstract]  
5. PROPERTY, PLANT AND EQUIPMENT, NET

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

 

    September 30, 2015   December 31, 2014
At cost:            
Mineral rights   $ 6,258,632     $ 6,506,668  
Buildings     70,127,755       53,231,127  
Plant and machinery     187,202,515       177,485,689  
Motor vehicles     9,031       9,389  
Furniture, fixtures and office equipment     4,965,702       4,884,991  
Total     268,563,635       242,117,864  
Less: Accumulated depreciation and amortization     (143,122,022 )     (117,767,083 )
Net book value   $ 125,441,613     $ 124,350,781  

 

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 or the government. The Company has not been able to obtain property ownership certificates over these buildings and salt pans. The aggregate carrying values of these properties situated on parcels of the land are $44,165,130 and $37,219,221 as at September 30, 2015 and December 31, 2014, respectively.

 

During the three-month period ended September 30, 2015, depreciation and amortization expense totaled $6,960,873, of which $6,592,218 and $368,655 were recorded as cost of net revenue and administrative expenses, 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 nine-month period ended September 30, 2015, depreciation and amortization expense totaled $21,690,038, of which $20,585,226 and $1,104,812 were recorded as cost of sales 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.