Quarterly report pursuant to Section 13 or 15(d)

Prepayment for Long-Term Assets

v3.5.0.2
Prepayment for Long-Term Assets
6 Months Ended
Jun. 30, 2016
Prepayment for Long-Term Assets [Abstract]  
PREPAYMENT FOR LONG-TERM ASSETS

NOTE 8 – PREPAYMENT FOR LONG-TERM ASSETS

 

At June 30, 2016 and December 31, 2015, prepayment for long-term assets consisted of prepayment for fishing vessels’ construction. In March 2016, the Company entered into two fishing vessels building agreements for 6 fishing vessels construction. In May 2016, the Company entered into one fishing vessels renovation agreement for 13 fishing vessels renovation. During the six months ended June 30, 2016, the Company made prepayments of RMB 251 million (approximately $38.4 million) for the construction of 6 fishing vessels and the renovation of 13 fishing vessels. The Company reclassifies the prepayment for fishing vessels’ construction to construction-in-progress using the percentage of completion method. During the six months ended June 30, 2016, the Company reclassified RMB 203.5 million (approximately $31.1 million) from prepayment for long-term assets to construction-in-progress.  

 

For the six months ended June 30, 2016, a summary of activities in prepayment for long-term assets was as follows:

 

    Prepayment for fishing vessels’ construction  
Balance - December 31, 2015   $ 11,654,645  
Prepayments made for fishing vessels’ construction     38,406,218  
Reclassification to construction-in-progress     (31,138,109 )
Foreign currency fluctuation     (386,040 )
Balance - June 30, 2016   $ 18,536,714