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Property, Plant and Equipment, Net
 6 Months Ended
Jun. 30, 2019
Property, Plant and Equipment [Abstract]  
Property, plant and equipment, net

(6) Property, plant and equipment, net

 

As of June 30, 2019 and December 31, 2018, property, plant and equipment consisted of the following:

 

    June 30,       December 31, 
    2019       2018 
Property, Plant, and Equipment:        
Land use rights  $11,861,695   $11,881,571 
Building and improvements   71,854,641    94,127,348 
Machinery and equipment   155,191,679    159,651,736 
Vehicles   596,485    597,484 
Construction in progress   5,380,484    5,005,041 
Totals   244,884,984    271,263,180 
Less: accumulated depreciation and amortization   (84,490,485)   (103,433,464)
Property, Plant and Equipment, net  $160,394,499   $167,829,716 

 

As of June 30, 2019 and December 31, 2018, land use rights represented two parcel of state-owned lands located in Xushui District and Wei County of Hebei Province in China, with lease terms of 50 years expiring from 2061 to 2066.

  

Construction in progress mainly represents payments for improvement of the office building and essentially all industrial-use buildings in the Headquarters Compound (the "Industrial Buildings").

 

As of June 30, 2019 and December 31, 2018, certain property, plant and equipment of Dongfang Paper with net values of $4,883,169 and $5,782,640, respectively, have been pledged pursuant to a long-term loan from credit union for Dongfang Paper. Land use right of Dongfang Paper with net values of $5,911,558 and $5,990,586 as of June 30, 2019 and December 31, 2018 were pledged for the bank loan from Industrial & Commercial Bank of China. Land use right of Hebei Tengsheng with net value of $3,356,741 has been pledged for a bank loan from Industrial & Commercial Bank of China of Dongfang Paper and another piece of land with a net value of $5,277,233 has been pledged for a long-term loan from credit union of Baoding Shengde. See "Short-term bank loans " and Long-term loans from credit union under Note (7), Loans Payable, for details of the transaction and asset collaterals.

 

Depreciation and amortization of property, plant and equipment was $3,859,399 and $3,680,248 for the three months ended June 30, 2019 and 2018, respectively. Depreciation and amortization of property, plant and equipment was $7,789,459 and $7,410,833 for the six months ended June 30, 2019 and 2018, respectively.