Annual report pursuant to Section 13 and 15(d)

Prepayment for Long-Term Assets

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Prepayment for Long-Term Assets
12 Months Ended
Dec. 31, 2016
Prepayment For Long-Term Assets [Abstract]  
PREPAYMENT FOR LONG-TERM ASSETS

NOTE 8 – PREPAYMENT FOR LONG-TERM ASSETS

 

At December 31, 2016 and 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 year ended December 31, 2016, the Company made prepayments of RMB 264,960,000 (approximately $39.9 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 year ended December 31, 2016, the Company reclassified RMB 257,960,000 (approximately $38.8 million) from prepayment for long-term assets to construction-in-progress. 

 

For the year ended December 31, 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     39,889,797  
Reclassification to construction-in-progress     (38,835,945 )
Foreign currency fluctuation     (794,585 )
Balance – December 31, 2016   $ 11,913,912