Annual report pursuant to Section 13 and 15(d)

Property, plant and equipment, net

v3.7.0.1
Property, plant and equipment, net
12 Months Ended
Dec. 31, 2016
Property, plant and equipment, net [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]
7.
Property, plant and equipment, net
 
 
 
December 31,
 
December 31,
 
 
 
2016
 
2015
 
 
 
$
 
$
 
Cost
 
 
 
 
 
 
 
Construction in progress
 
 
715,188
 
 
1,678,961
 
Furniture, fixtures and office equipment
 
 
4,025,635
 
 
3,882,594
 
Leasehold improvement
 
 
5,865,909
 
 
4,092,668
 
Machinery and equipment
 
 
27,526,572
 
 
29,295,041
 
Motor vehicles
 
 
1,496,628
 
 
1,643,173
 
Building
 
 
21,797,158
 
 
23,046,056
 
 
 
 
61,427,090
 
 
63,638,493
 
Less: accumulated depreciation
 
 
17,922,099
 
 
16,174,307
 
 
 
 
43,504,991
 
 
47,464,186
 
 
The Company recorded depreciation expenses of $4,797,968 and $4,794,162 for the years ended December 31, 2016 and 2015, respectively.
 
During the years ended December 31, 2016 and 2015, deferred income related to government grants of $229,951 and $2,547,545, respectively, was reduced from the carrying amount of property, plant and equipment.
 
During the years ended December 31, 2016 and 2015, the Company recorded $530,914 and $nil of impairment loss of machinery and equipment, respectively.
 
The buildings comprising the Huizhou facilities were pledged as collateral for bank loans as of December 31, 2016 and 2015. The carrying amounts of the buildings were $8,864,837 and $9,715,879 as of December 31, 2016 and 2015, respectively.
 
The building located in Longgang, Shenzhen, Guangdong was pledged as collateral for bank loans as of December 31, 2016. The carrying amount of the buildings was $394,640 as of December 31, 2016.
 
The buildings comprising the Ganzhou facilities were pledged as collateral for short-term loans and bank acceptance bills drawn under certain lines of credit. The carrying amounts of the building were $2,594,975 and $2,703,743 as of December 31, 2016 and 2015, respectively.