PROPERTY, PLANT AND EQUIPMENT, NET

9 Months Ended

Sep. 30, 2014

PROPERTY, PLANT AND EQUIPMENT, NET [Text Block]

6. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment consist of the following:

		September 30,			December 31,
		2014			2013
		(Unaudited)
Buildings and improvements	$	28,537,252		$	27,685,361
Machinery		61,753,370			59,891,529
Office equipment and furnishing		966,770			864,976
Motor vehicles		1,469,170			1,586,513
Construction in progress		3,422,580			153,647
		96,149,142			90,182,026
Less: accumulated depreciation		(26,358,689	)		(21,700,383	)
	$	69,790,453		$	68,481,643

The Group recorded depreciation expenses of US$5,493,883 and US$3,867,592 for the nine months ended September 30, 2014 and 2013, respectively, and US$1,809,787 and US$1,686,598 for the three months ended September 30, 2014 and 2013, respectively.

The property, plant and equipment with net book value amounting to US$8,591,985 and US$9,010,726 were pledged as collateral for bank loans as of September 30, 2014 and December 31, 2013, respectively.