Property, Plant and Equipment, net

3 Months Ended

Dec. 31, 2012

Property, Plant and Equipment, net [Text Block]

6 Property, Plant and Equipment, net

Property, plant and equipment as of September 30, 2012 and December 31, 2012 consisted of the following:

		September 30,			December 31,
		2012			2012
Buildings	$	115,034,342		$	127,865,523
Machinery and equipment		168,947,314			159,389,445
Office equipment		2,624,137			2,652,676
Motor vehicles		1,486,337			1,486,007
		288,092,130			291,393,651
Accumulated depreciation		(102,766,292	)		(108,354,523	)
Construction in progress		51,714,066			70,328,335
Prepayment for acquisition of property, plant and equipment		1,717,991			2,718,771
Carrying amount	$	238,757,895		$	256,086,234

(i) Depreciation expense for the three months ended December 31, 2011 and 2012 is included in the condensed interim consolidated statements of operations and comprehensive loss as follows:

		Three months ended December 31,
		2011		2012
Cost of revenues	$	3,708,478	$	3,941,806
Research and development expenses		140,347		136,717
Sales and marketing expenses		43,765		32,582
General and administrative expenses		822,382		806,665
	$	4,714,972	$	4,917,770

(ii) Construction in Progress

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

For the three months ended December 31, 2011 and 2012, the Company capitalized interest of $124,854 and $709,860 respectively to the cost of construction in progress.

(iii) Impairment charge

During the course of the Company’s strategic review of its operations, the Company assessed the recoverability of the carrying value of certain property, plant and equipment which resulted in impairment losses of nil and $2,707,686 for the three months ended December 31, 2012 and 2011, respectively. The impairment charge represented the excess of carrying amounts of the Company’s property, plant and equipment over the estimated discounted cash flows expected to be generated by the Company’s production facilities in Shenzhen primarily for the production of aluminum-case cells.