PROPERTY, PLANT AND EQUIPMENT, NET

3 Months Ended

Mar. 31, 2019

NOTE 8. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment consists of the following:

	March 31,			December 31,
	2019			2018
	(unaudited)
Buildings	$	2,785,890		$	2,733,242
Machinery and equipment		2,470,306			2,458,479
Furniture and office Equipment		568,131			538,281
Motor vehicles		400,829			393,254
Leasehold improvements		725,425			711,716
		6,950,581			6,834,972
Less: accumulated depreciation		(2,197,140	)		(2,042,794	)
		4,753,441			4,792,178
Add: construction in process		25,494,115			21,917,871
Property, plant and equipment, net	$	30,247,556		$	26,710,049

Depreciation expense for the three months ended March 31, 2019 and 2018 was $157,238 and $80,941 respectively.

Construction in progress represented the Company’s new factory and office building in Kaifeng, Henan Province and building improvement in Changzhou, Jiangsu Province. The main construction work of factory and office building in Kaifeng were completed in the second quarter of 2018 and it is expected to be placed in service in the second quarter of 2019 when the work on the interior of the building are completed.

The Company has not obtained all required construction permits in accordance with Article 64 of the Urban and Rural Planning Law in China, however, the Company has received a waiver letter from local government that the Company would be not subject to any penalty for the construction.

As of March 31, 2019, one floor of the office in Changzhou Jufeel, which was recorded in buildings with the carrying value of $1,404,840 was pledged against a credit facility from Jiangnan Rural Commercial Bank (see Note 12).

Jufeel International Group 10-Q/A