Quarterly report pursuant to Section 13 or 15(d)

Taxation (Tables)

v3.7.0.1
Taxation (Tables)
6 Months Ended
Jun. 30, 2017
Taxation [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
The components of the provision for income taxes expenses are:
 
 
 
Three months ended
 
Six months ended
 
 
 
June 30,
 
June 30,
 
 
 
2017
 
2016
 
2017
 
2016
 
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
 
 
$
 
$
 
$
 
$
 
Current
 
 
456,583
 
 
111,867
 
 
919,800
 
 
274,488
 
Deferred
 
 
139,125
 
 
62,446
 
 
263,673
 
 
(64,671)
 
Total income tax expenses
 
 
595,708
 
 
174,313
 
 
1,183,473
 
 
209,817
 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
The reconciliation of income tax expense computed at the statutory tax rate applicable to the Company to income tax expense is as follows:
 
 
 
Three months ended
 
Six months ended
 
 
 
June 30,
 
June 30,
 
 
 
2017
 
2016
 
2017
 
2016
 
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
 
 
$
 
$
 
$
 
$
 
Income before tax
 
 
5,057,908
 
 
2,047,426
 
 
8,258,215
 
 
1,606,801
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for income taxes at applicable income tax rate
 
 
1,267,859
 
 
512,993
 
 
2,071,191
 
 
409,393
 
Effect of preferential tax rate
 
 
(397,140)
 
 
(116,208)
 
 
(788,983)
 
 
(139,878)
 
R&D expenses eligible for super deduction
 
 
(442,939)
 
 
(555,531)
 
 
(442,939)
 
 
(555,531)
 
Non-deductible expenses
 
 
17,448
 
 
96,716
 
 
33,995
 
 
114,336
 
Change in valuation allowance
 
 
150,480
 
 
236,343
 
 
310,209
 
 
381,497
 
Effective enterprise income taxes expenses
 
 
595,708
 
 
174,313
 
 
1,183,473
 
 
209,817
 
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
The following represents the tax effect of each major type of temporary difference.
 
 
 
June 30,
 
December 31,
 
 
 
2017
 
2016
 
 
 
(Unaudited)
 
 
 
 
 
$
 
$
 
Tax loss carry-forward
 
 
4,330,451
 
 
4,274,881
 
Allowance for doubtful receivables
 
 
125,037
 
 
121,932
 
Impairment for inventory
 
 
119,315
 
 
98,276
 
Difference for sales cut-off
 
 
731
 
 
14,245
 
Deferred income
 
 
133,823
 
 
114,224
 
Property, plant and equipment subsidized by government grant
 
 
475,064
 
 
468,313
 
Impairment for property, plant and equipment
 
 
58,779
 
 
76,248
 
Total gross deferred tax assets
 
 
5,243,200
 
 
5,168,119
 
Valuation allowance
 
 
(3,994,974)
 
 
(3,690,358)
 
Total net deferred tax assets
 
 
1,248,226
 
 
1,477,761