16. Property, Plant, and Equipment, Net

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment Disclosure [Text Block]

16. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment and related accumulated depreciation as of December 31, 2012 and 2011 were as follows:

	2012			2011
	US$			US$
Buildings and plant		62,825,600			71,761,419
Machinery and equipment		79,997,837			79,153,189
Office equipment		3,933,542			2,418,688
Motor vehicles		2,980,011			4,236,268
		149,736,990			157,569,564
Less: Accumulated depreciation		(34,746,182	)		(28,829,927	)
Property, plant and equipment, net		114,990,808			128,739,637

(1) Depreciation expenses

Depreciation expense for the continuing operations for the years ended December 31, 2012, 2011 and 2010 was $8,439,405, $6,683,434 and $5,586,699, respectively, of which $5,589,499, $4,350,828 and $3,902,514 was included as a component of cost of goods sold in the respective years.

(2) Pledged property, plant and equipment

The net book value of buildings and plant, machinery and equipment and land use rights pledged for bank loans was $13,021,820, $26,052,365 and $4,322,344, respectively, as of December 31, 2012. The net book value of buildings and plant, machinery and equipment and land use rights pledged for bank loans was $24,971,201, $47,231,525 and $697,580, respectively, as of December 31, 2011.

(3) Capitalized interest

Nil, $945,581 and $372,679 of interest expense was capitalized in property, plant and equipment for the years ended December 31, 2012, 2011 and 2010, respectively.