Property, Plant and Equipment, net

9 Months Ended

Jun. 30, 2012

Property, Plant and Equipment, net [Text Block]

6 Property, Plant and Equipment, net

Property, plant and equipment as of September 30, 2011 and June 30, 2012 consisted of the following:

		September 30,			June 30,
		2011			2012
Buildings	$	127,025,347		$	128,578,795
Machinery and equipment		159,355,671			166,069,073
Office equipment		2,519,208			2,544,805
Motor vehicles		1,453,456			1,447,258
		290,353,682			298,639,931
Accumulated depreciation		(80,673,667	)		(95,795,383	)
Construction in progress		45,305,701			49,144,819
Prepayment for acquisition of property, plant and equipment		1,466,207			2,485,912
Assets held for abandonment		744,356			760,168
Net book value		257,196,279			255,235,447
Impairment charge		(13,958,165	)		(20,331,690	)
Carried amount	$	243,238,114		$	234,903,757

(i) Depreciation expense for the nine months ended June 30, 2011 and 2012 is included in the condensed interim consolidated statements of operations and comprehensive loss as follows:

		Nine months ended June 30,
		2011		2012
Cost of revenues	$	11,013,421	$	11,007,553
Research and development expenses		353,576		444,769
Sales and marketing expenses		328,080		128,338
General and administrative expenses		2,128,748		2,486,428
	$	13,823,825	$	14,067,088

(ii) Construction in Progress

Construction in progress mainly comprises capital expenditures for construction of the Company’s new corporate campus, including offices and factories.

For the nine months ended June 30, 2011 and 2012, the Company capitalized interest of US$242,508 and US$1,155,846 respectively to the cost of construction in progress.

(iii) Pledged Property, Plant and Equipment

As of September 30, 2011 and June 30, 2012, machinery and equipment with net book value of US$56,376,435 and US$52,546,848 and buildings with net book value of US$109,076,470 and US$109,530,883 were pledged as collateral under certain loan arrangements (see Note 7 and 8).

(iv) Assets held for abandonment

Assets held for abandonment as of September 30, 2011 and June 30, 2012 consisted of the following:

		September 30,		June 30,
		2011		2012
Net book value	$	744,356		760,168
Less: impairment charge		(744,356	)	(760,168	)
Carried amount	$	-		-

The carried amount as of September 30, 2011 and June 30, 2012 composed of the machinery and equipment relating to steel-case cell production line and certain used assets which have been written down to nil.