Quarterly report pursuant to Section 13 or 15(d)

Property, plant and equipment, net

v3.7.0.1
Property, plant and equipment, net
6 Months Ended
Jun. 30, 2017
Property, plant and equipment, net [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]
5.
Property, plant and equipment, net
 
 
 
June 30,
 
December 31,
 
 
 
2017
 
2016
 
 
 
(Unaudited)
 
 
 
 
 
 
 
$
 
 
$
 
Cost
 
 
 
 
 
 
 
Construction in progress
 
 
814,911
 
 
715,188
 
Furniture, fixtures and office equipment
 
 
4,615,273
 
 
4,025,635
 
Leasehold improvement
 
 
6,458,733
 
 
5,865,909
 
Machinery and equipment
 
 
30,313,242
 
 
27,526,572
 
Motor vehicles
 
 
1,573,570
 
 
1,496,628
 
Buildings
 
 
22,419,779
 
 
21,797,158
 
 
 
 
66,195,508
 
 
61,427,090
 
Less: accumulated depreciation
 
 
20,027,952
 
 
17,922,099
 
 
 
 
46,167,556
 
 
43,504,991
 
 
The Company recorded depreciation expenses of $2,361,482 and $2,415,561 for the six months ended June 30, 2017 and 2016, respectively, and $1,121,356 and $1,194,584 for the three months ended June 30, 2017 and 2016, respectively.
 
During the six months ended June 30, 2017, the Company deducted deferred income related to government grants of $86,643 on the carrying amount of property, plant and equipment. During the year ended December 31, 2016, the Company deducted deferred income related to government grants of $229,951 in calculating the carrying amount of property, plant and equipment.
 
The real estate properties and buildings in Huizhou and Ganzhou have been pledged as collateral for short-term loans and bank acceptance bills drawn under certain lines of credit as of June 30, 2017 and December 31, 2016. The real estate properties and buildings in Shenzhen have been pledged as collateral for short-term loans as of June 30, 2017 and December 31, 2016 (Note 9).