Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment

v3.21.2
Property, Plant and Equipment
12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 9 – PROPERTY, PLANT AND EQUIPMENT

 

At December 31, 2020 and 2019, property, plant and equipment consisted of the following:

  

    Useful life   December 31, 2020     December 31, 2019  
Fishing vessels   10 - 20 Years   $ 304,764,105     $ 304,619,431  
Vehicles   5 Years     23,336       21,826  
Office and other equipment   3 – 5 Years     488,084       427,154  
          305,275,525       305,068,411  
Less: accumulated depreciation               (55,120,514 )     (45,690,682 )
        $ 250,155,011     $ 259,377,729  

 

In 2020, the Company received a government subsidy for 30 completed fishing vessels that amounted to RMB 202.5 million (approximately US$29.4 million). The subsidy is related to assets, which require deducting it from the carrying amount of the asset.

 

For the years ended December 31, 2020, 2019 and 2018, depreciation expense amounted to $14,722,446, $11,308,882 and $9,141,975, respectively, of which $11,655,924, $7,582,821 and $3,350,417, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively.

 

The Company had 82 and 70 fishing vessels at December 31, 2020 and 2019, with net carrying amounts of approximately $227.3 million and $190.8 million, respectively, pledged as collateral for its bank loans. 

 

Since 2014, there has been no progress on fishing license renewals as a result of the Indonesian government’s moratorium, foreign companies, like the Company, cannot obtain renewed fishing licenses issued by the Indonesian government. The management of the Company determined to shift the focus of development to the international waters and consider obtaining corresponding fishing permits. In response to impairment triggering events, the Company recorded impairment loss on vessels was $66,694,253, $7,951,635 and $9,715,058 for the year ended 2020, 2019 and 2018, respectively. See Note 2 for further details.