Quarterly report pursuant to sections 13 or 15(d)

PROPERTY, PLANT AND EQUIPMENT,NET

v2.4.0.8
PROPERTY, PLANT AND EQUIPMENT,NET
6 Months Ended
Jun. 30, 2013
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]
 
15.
PROPERTY, PLANT AND EQUIPMENT, NET
 
Property, plant and equipment as of June 30, 2013 and December 31, 2012 consisted of the following:
 
China Dredging
 
 
 
June 30, 2013
 
December 31, 2012
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Dredgers
 
$
73,754,961
 
$
72,657,534
 
Motor vehicles
 
 
555,839
 
 
85,971
 
Machinery
 
 
86,339
 
 
41,235
 
Office equipment
 
 
32,787
 
 
7,950
 
 
 
 
74,429,926
 
 
72,792,690
 
Less: Accumulated depreciation
 
 
(32,045,135)
 
 
(28,227,208)
 
 
 
$
42,384,791
 
$
44,565,482
 
 
Total depreciation expenses for the three months ended June 30, 2013 and 2012 were $1,929,952 and $1,837,050, respectively, of which $1,929,569 and $1,836,678, respectively, were included in cost of revenue.
 
Total depreciation expenses for the six months ended June 30, 2013 and 2012 were $3,817,927 and $3,683,983, respectively, of which $3,817,166 and $3,683,238, respectively, were included in cost of revenue.
 
As of June 30, 2013 and December 31, 2012, CDGC owned four dredgers. As of June 30, 2013 and December 31, 2012, the total net book value of the dredgers was $41,794,911 and $44,483,781, respectively.
 
Merchant Supreme
 
 
 
June 30, 2013
 
December 31, 2012
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Externally purchased fishing vessels
 
$
21,518,850
 
$
20,934,880
 
Office and other equipment
 
 
140,166
 
 
134,684
 
Fishing vessels under construction
 
 
32,857,805
 
 
17,436,515
 
 
 
 
54,516,821
 
 
38,506,079
 
Less: Accumulated depreciation
 
 
(2,942,841)
 
 
(1,364,173)
 
 
 
$
51,573,980
 
$
37,141,906
 
 
Depreciation expenses were $769,322 and $905,691 for the three months ended June 30, 2013 and 2012, respectively; $1,529,723 and $1,871,318 for the six months ended June 30, 2013 and 2012, respectively.
 
As of June 30, 2013 and December 31, 2012, Merchant Supreme had 16 fishing vessels which were fully depreciated with estimated useful lives of 10 years.  These fishing vessels were contributed by registered equity owners in exchange for Merchant Supreme's paid-in capital and were recorded at the equity owners' historical cost of $nil at the time of contribution.
 
As of June 30, 2013 and December 31, 2012, Merchant Supreme had 20 fishing vessels with net carrying amount of $17,387,855 and $17,334,990 pledge as collateral for term loans of Merchant Supreme and of a related party in the amount of approximately $10.6 million.