Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Plant and equipment

v3.20.1
Plant and equipment
12 Months Ended
Dec. 31, 2019
Plant and equipment  
Plant and equipment

5.Plant and equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

Computer

    

 

    

 

 

 

 

    

 

    

 

 

 

Furniture 

 

 hardware

 

 

 

 

 

 

 

 

Production 

 

 

 

 

and 

 

 and 

 

 

 

Leasehold 

 

Right-of-

 

tooling 

 

 

 

    

equipment

    

software

    

Vehicles

    

Improvements

    

use assets

    

and molds

    

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost:

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

 

  

 

 

  

 

At December 31, 2017

 

 

290,843

 

 

73,654

 

 

390,050

 

 

101,200

 

 

 —

 

 

914,060

 

 

1,769,807

Additions

 

 

203,644

 

 

59,749

 

 

 —

 

 

283,141

 

 

 —

 

 

3,635,888

 

 

4,182,422

Disposals

 

 

 —

 

 

 —

 

 

(2,001)

 

 

 —

 

 

 —

 

 

 —

 

 

(2,001)

December 31, 2018

 

 

494,487

 

 

133,403

 

 

388,049

 

 

384,341

 

 

 —

 

 

4,549,948

 

 

5,950,228

Additions

 

 

73,691

 

 

139,863

 

 

 —

 

 

129,327

 

 

 

 

 

3,310,971

 

 

3,653,852

Adoption of IFRS 16

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

2,061,469

 

 

 —

 

 

2,061,469

Disposals

 

 

 —

 

 

(2,150)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(2,150)

December 31, 2019

 

 

568,178

 

 

271,116

 

 

388,049

 

 

513,668

 

 

2,061,469

 

 

7,860,919

 

 

11,663,399

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

 

  

 

 

  

At December 31, 2017

 

 

188,606

 

 

27,147

 

 

85,764

 

 

74,607

 

 

 —

 

 

 —

 

 

376,124

Charge for the year

 

 

42,192

 

 

38,542

 

 

129,487

 

 

40,117

 

 

 —

 

 

 —

 

 

250,338

At December 31, 2018

 

 

230,798

 

 

65,689

 

 

215,251

 

 

114,724

 

 

 —

 

 

 —

 

 

626,462

Additions

 

 

77,975

 

 

65,600

 

 

117,326

 

 

121,951

 

 

664,797

 

 

 —

 

 

1,047,649

Disposals

 

 

 —

 

 

(1,254)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(1,254)

December 31, 2019

 

 

308,773

 

 

130,035

 

 

332,577

 

 

236,675

 

 

664,797

 

 

 —

 

 

1,672,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net book value:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

 

  

 

 

  

At December 31, 2018

 

$

263,689

 

$

67,714

 

$

172,798

 

$

269,617

 

$

 —

 

$

4,549,948

 

$

5,323,766

At December 31, 2019

 

$

259,405

 

$

141,081

 

$

55,472

 

$

276,993

 

$

1,396,672

 

$

7,860,919

 

$

9,990,542

 

On September 29, 2017, the Company entered into a manufacturing agreement with Chongqing Zongshen Automobile Co., Ltd. (“Zongshen”). Under the agreement, the Company agrees to reimburse Zongshen for the cost of prototype tooling and molds estimated to be CNY ¥9.5 million ($1.8 million), which was payable on or before March 18, 2018, subject to a 10% holdback, and mass production tooling and molds estimated to be CNY ¥37 million ($6.9 million) as at December 31, 2019, which shall be payable 50% when Zongshen commences manufacturing the tooling and molds, 40% when Zongshen completes manufacturing the tooling and molds, and 10% upon delivery to the Company of the first production vehicle. At December 31, 2019, the Company has completed the prototype tooling and molds with actual cost of CNY ¥10.1 million ($1.9 million), as assessed by the Company, the prototype tooling and molds will be used for the mass production. The Company had paid 90% of prototype tooling and molds and 89% of the mass production tooling and molds. Depreciation on the production tooling and molds is charged on a per unit produced basis. No depreciation on the production tooling and molds is charged for year ended December 31,2019 since no units had been produced using the production tooling and molds.

On October 16, 2017, the CEO of the Company (“Pledgor”) entered into a Share Pledge Agreement (“Share Pledge”) to guarantee the payment by the Company for the cost of the prototype tooling and molds estimated to be CNY ¥9.5 million ($1.8 million) to Zongshen through the pledge of 400,000 common shares of the Company. The Company approved its obligations under the Share Pledge and has agreed to reimburse the Pledgor on a one for one basis for any pledged shares realized by Zongshen.