PROPERTY, PLANT AND EQUIPMENT, NET

6 Months Ended

Jun. 30, 2011

Property, Plant and Equipment [Abstract]

6. PROPERTY, PLANT AND EQUIPMENT, NET

Property and equipment consisted of the following.

	As of		As of
	June 30, 2011		December 31, 2010
	(Unaudited)

Leasehold land and buildings	$	4,105,970	$	1,507,916
Plant and equipment		630,644		613,287
Motor vehicles		62,649		52,908
Office equipment		343,451		83,599
		5,142,714		2,257,710

Less: accumulated depreciation and amortization		802,378		703,121
	$	4,340,336	$	1,554,589

The Company has buildings on the site it occupies, including factory buildings. Due to the lack of a Land Use Right Certificate, the Company is unable to apply for the Property Ownership Certificate for the buildings. However, as the buildings are in use, the Company depreciates them over their expected useful lives. During the quarter ended June 30, 2011, the Company’s factory campus construction project was completed and the costs were moved from construction in process to the buildings account. Upon placement in service, the Company began depreciating them.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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