XML 21 R10.htm IDEA: XBRL DOCUMENT v3.7.0.1
4. PROPERTY, PLANT AND EQUIPMENT, NET
 3 Months Ended
Mar. 31, 2017
Property, Plant and Equipment [Abstract]  
4. PROPERTY, PLANT AND EQUIPMENT, NET

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

 

   

March 31,

2017

    

December 31,

2016

  
At cost:            
Mineral rights   $ 4,462,438     $ 4,438,115  
Buildings     62,300,940       61,656,398  
Plant and machinery     185,802,691       184,544,140  
Motor vehicles     8,327       8,282  
Furniture, fixtures and office equipment     4,578,428       4,553,473  
Construction in process     -       374,790  
Total     257,152,824       255,575,198  
Less: Accumulated depreciation and amortization     (152,998,604 )     (146,844,072 )
Net book value   $ 104,154,220     $ 108,731,126  

 

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 authority. 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 $34,751,155 and $35,184,613 as at March 31, 2017 and December 31, 2016, respectively.

 

During the three-month period ended March 31, 2017, depreciation and amortization expense totaled $5,360,103, of which $5,068,503 and $291,600 were recorded as cost of net revenue and administrative expenses, respectively. During the three-month period ended March 31, 2016, depreciation and amortization expense totaled $6,786,400, of which $6,438,140 and $348,260 were recorded as cost of net revenue and administrative expenses, respectively.