Property, Plant and Equipment

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

NOTE 3 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

	June 30,			December 31,
	2016			2016
Permit of land use	$	415,629		$	405,645
Building		9,651,565			9,419,700
Plant, machinery and equipment		26,845,231			26,151,029
Motor vehicle		317,402			309,777
Office equipment		189,169			182,718
Total		37,418,996			36,468,869
Less: accumulated depreciation		(13,338,670	)		(11,501,421	)
Property, Plant and Equipment, net	$	24,080,326		$	24,967,448

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

Depreciation relating to office equipment was included in general and administrative expenses, while all other depreciation was included in cost of revenue. For the three months ended June 30, 2017 and 2016, depreciation expense was $770,458 and $921,983, respectively. For the six months ended June 30, 2017 and 2016, depreciation expense was $1,535,072 and $1,594,307, respectively.