Property, plant and equipment

12 Months Ended

Dec. 31, 2011

(6) Property, plant and equipment

As of December 31, 2011 and 2010, property, plant and equipment consisted of the following:

	December 31,			December 31,
	2011			2010
Property, Plant, and Equipment:
Land use rights	$	2,358,862		$	2,266,282
Building and improvements		11,145,342			7,283,466
Machinery and equipment		122,844,563			64,913,451
Vehicles		233,217			224,063
Construction in progress		2,335,579			32,316,540
		138,917,563			107,003,802
Less accumulated depreciation and amortization		(24,266,456	)		(19,557,842	)
Property, Plant and Equipment, net	$	114,651,107		$	87,445,960

Land use rights represent state-owned land located in China with lease terms of 50 years expiring in 2053.

Construction in progress mainly represents payments for the staff dormitory and canteen under construction.

Property, plant and equipment with net values of $10,646,244 and $4,928,033 have been pledged for short-term bank loans of HBOP as of December 31, 2011 and 2010, respectively. Depreciation and amortization of property, plant and equipment was $4,424,531, $4,147,777 and $3,510,082 during the years ended December 31, 2011, 2010 and 2009, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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