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Prepayments and other current assets

6 Months Ended

Jun. 30, 2021

Prepaid Expenses And Other Current Assets Disclosure [Abstract]

(5) Prepayments and other current assets

Prepayments and other current assets consisted of the following as of June 30, 2021 and December 31, 2020:

	June 30,		December 31,
	2021		2020
Prepaid land lease	$	185,756	$	183,912
Prepayment for purchase of materials		8,838,734		10,945
Value-added tax recoverable		5,935,486		5,864,989
Others		287,132		991,669
	$	15,247,108	$	7,051,515

As of June 30, 2021 and December 31, 2020, land use rights represented two 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 2066, respectively.

Construction in progress mainly represents payments for paper machine of a new tissue paper production line PM10.

As of June 30, 2021 and December 31, 2020, certain property, plant and equipment of Dongfang Paper with net values of $1,522,164 and $2,349,796, respectively, have been pledged pursuant to a long-term loan from credit union of Dongfang Paper. Land use right of Dongfang Paper with net values of $5,997,212 and $6,010,359, respectively, as of June 30, 2021 and December 31, 2020 was pledged for the bank loan from Industrial & Commercial Bank of China. Land use right of Hebei Tengsheng with net value of $5,615,919 and $5,560,146, respectively, as of June 30, 2021 and December 31, 2020 was pledged for a long-term loan from credit union of Baoding Shengde. In addition, land use right of Hebei Tengsheng with net value of $8,700,601 and $8,614,194, respectively, as of June 30, 2021 and December 31, 2020 was pledged for another long-term loan from credit union of Baoding Shengde. See “Short-term bank loans” under Note (7), Loans Payable, for details of the transaction and asset collaterals.

Depreciation and amortization of property, plant and equipment was $4,070,458 and $3,721,640 for the three months ended June 30, 2021 and 2020, respectively. Depreciation and amortization of property, plant and equipment was $8,159,525 and $7,496,314 for the six months ended June 30, 2021 and 2020, respectively.