PROPERTY AND EQUIPMENT (TABLES)

12 Months Ended

Dec. 31, 2015

Property and equipment consisted of the following:

	December 31,			December 31,
	2015			2014
Permit of land use	$	433,956		$	458,853
Building		10,557,234			11,279,704
Plant, machinery and equipment		27,325,440			28,358,694
Motor vehicle		242,860			150,976
Office equipment		256,679			268,521
Construction in progress		-			5,848
Total		38,816,169			40,522,596
Less: accumulated depreciation		(9,422,912	)		(6,640,718	)
Property and Equipment, net	$	29,393,257		$	33,881,878

A reconciliation of total interest cost incurred to interest expense as recognized in the consolidated statement of operations is as follows:

	For the Year
	Ended December 31,
	2015		2014
Total interest cost incurred	$	1,165,164	$	1,244,346
Interest cost capitalized		-		458,542
Interest expense	$	1,165,164	$	785,804

Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:

Asset		Life - years
Permit of land use		40 - 70
Building		20 - 49
Plant, machinery and equipment		5 - 10
Motor vehicle		5 - 10
Office equipment		3-5