Property, plant and equipment, net

6 Months Ended

Jun. 30, 2018

Property, plant and equipment, net [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

6. Property, plant and equipment, net

	June 30,		December 31,
	2018		2017
	(Unaudited)
	$		$
Cost
Construction in progress		2,122,511		1,330,643
Furniture, fixtures and office equipment		6,632,609		5,794,983
Leasehold improvement		7,048,452		7,080,409
Machinery and equipment		35,538,190		33,176,416
Motor vehicles		1,556,477		1,498,605
Buildings		19,840,548		20,169,197
		72,738,787		69,050,253
Less: accumulated depreciation		24,603,636		22,529,477
		48,135,151		46,520,776

The Company recorded depreciation expenses of $2,945,238 and $2,361,482 for the six months ended June 30, 2018 and 2017, respectively, and $1,499,538 and $1,121,356 for the three months ended June 30, 2018 and 2017, respectively.

During the six months ended June 30, 2018, the Company deducted deferred income related to government grants of $nil on the carrying amount of property, plant and equipment. During the year ended December 31, 2017, the Company deducted deferred income related to government grants of $263,948 in calculating the carrying amount of property, plant and equipment.

The buildings comprising the Huizhou facilities were pledged as collateral for bank loans. The net carrying amounts of the buildings were $8,955,311 and $9,224,694 as of June 30, 2018 and December 31, 2017, respectively.

The building located in Shenzhen, Guangdong was pledged as collateral for bank loans. The net carrying amount of the buildings was $378,280 and $396,843 as of June 30, 2018 and December 31, 2017, respectively.