Property, Plant and Equipment, Net

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment, Net [Abstract]

Property, plant and equipment, net

(6) Property, plant and equipment, net

As of June 30, 2024 and December 31, 2023, property, plant and equipment consisted of the following:

	June 30,			December 31,
	2024			2023
Land use rights	$	81,000,265		$	81,504,608
Building and improvements		67,156,279			67,939,059
Machinery and equipment		157,513,260			158,629,858
Vehicles		346,054			348,209
Construction in progress		-			-
Totals		306,015,858			308,421,734
Less: accumulated depreciation and amortization		(150,391,106	)		(144,447,712	)
Property, Plant and Equipment, net	$	155,624,752		$	163,974,022

As of June 30, 2024 and December 31, 2023, land use rights represented twenty three parcels of state-owned lands located in Xushui District and Wei County of Hebei Province in China, with lease terms of 50 years expiring in 2061 and 2068, respectively.

As of June 30, 2024 and December 31, 2023, certain property, plant and equipment of Dongfang Paper with net values of $nil, have been pledged pursuant to a long-term loan from credit union of Dongfang Paper. Land use right of Tengsheng Paper with net value of $4,822,130 and $4,910,034, respectively, as of June 30, 2024 and December 31, 2023 was pledged for a long-term loan from credit union of Baoding Shengde. In addition, land use right of Tengsheng Paper with net value of $3,707,411 and $3,781,366, respectively, as of June 30, 2024 and December 31, 2023 was pledged for another long-term loan from credit union of Baoding Shengde. Land use right of Dongfang Paper with net value of $5,036,790 and $5,135,132, respectively, as of June 30, 2024 and December 31, 2023 was pledged for a long-term loan from credit union of Tengsheng Paper. Certain property, plant and equipment of Dongfang Paper with net values of $276,269 was pledged for a short-term loan from Bank of Cangzhou. See “Short-term bank loans” under Note (8), Loans Payable, for details of the transaction and asset collaterals.

Depreciation and amortization of property, plant and equipment was $3,381,095 and $3,463,814 for the three months ended June 30, 2024 and 2023, respectively. Depreciation and amortization of property, plant and equipment was $6,862,883 and $7,150,057 for the six months ended June 30, 2024 and 2023, respectively.