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Property, Plant and Equipment, Net

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

Property, plant and equipment, net

(6) Property, plant and equipment, net

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

		September 30,				December 31,
		2019				2018
Property, Plant, and Equipment:
Land use rights		$	11,529,302			$	11,881,571
Building and improvements			69,843,671				94,127,348
Machinery and equipment			150,862,847				159,651,736
Vehicles			579,770				597,484
Construction in progress			6,146,334				5,005,041
Totals			238,961,924				271,263,180
Less: accumulated depreciation and amortization			(85,853,416	)			(103,433,464	)
Property, Plant and Equipment, net		$	153,108,508			$	167,829,716

As of September 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 September 30, 2019 and December 31, 2018, certain property, plant and equipment of Dongfang Paper with net values of $4,313,899 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 $5,712,365 and $5,990,586 as of September 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 $3,262,677 has been pledged for a bank loan from Industrial & Commercial Bank of China to Dongfang Paper and another piece of land with a net value of $5,129,352 has been pledged for a long-term loan from credit union to 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 $3,758,191 and $3,462,703 for the three months ended September 30, 2019 and 2018, respectively. Depreciation and amortization of property, plant and equipment was $11,547,650 and $10,873,536 for the nine months ended September 30, 2019 and 2018, respectively.