Property, Plant and Equipment, Net

3 Months Ended

Mar. 31, 2013

Property, Plant and Equipment, Net [Abstract]

7. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment as of March 31, 2013 and December 31, 2012 consisted of the following.

	March 31,			December 31,
	2013			2012
	(Unaudited)

Buildings and leasehold improvements	$	5,069,572		$	4,596,527
Plant and equipment		1,372,593			1,365,043
Motor vehicles		169,918			168,984
Office equipment		342,756			340,870
Total property, plant and equipment		6,954,839			6,471,423

Less: accumulated depreciation		(1,797,528	)		(1,658,192	)
Property, plant and equipment, net	$	5,157,311		$	4,813,232

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.

We recorded depreciation expenses of $139,336 and $123,802 for the three months ended March 31, 2013 and 2012, respectively.

- 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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