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Property, Plant and Equipment, Net

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Property, Plant and Equipment, Net

6. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment as of September 30, 2011 and December 31, 2010 consisted of the following.

		September 30,				December 31,
		2011				2010

Buildings		$	4,322,107			$	1,507,916
Plant and equipment			679,767				613,287
Motor vehicles			55,149				52,908
Office equipment			382,314				83,599
			5,439,337				2,257,710

Accumulated depreciation			861,434				703,121
		$	4,577,903			$	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.

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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