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:
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.
The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef