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Property, plant and equipment, net
 9 Months Ended
Sep. 30, 2021
Property, Plant and Equipment [Abstract]  
Property, plant and equipment, net

(6) Property, plant and equipment, net

 

As of September 30, 2021 and December 31, 2020, property, plant and equipment consisted of the following:

 

   September 30,   December 31, 
   2021   2020 
Property, Plant, and Equipment:        
Land use rights  $12,573,719   $12,497,601 
Building and improvements   73,347,682    81,233,162 
Machinery and equipment   164,041,126    163,787,807 
Vehicles   664,437    628,462 
Construction in progress   2,349,169    586,216 
Totals   252,976,133    258,733,248 
Less: accumulated depreciation and amortization   (125,912,986)   (113,590,606)
Property, Plant and Equipment, net  $127,063,147   $145,142,642 

 

As of September 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 September 30, 2021 and December 31, 2020, certain property, plant and equipment of Dongfang Paper with net values of $1,313,720 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 $5,937,242 and $6,010,359, respectively, as of September 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 $5,594,011 and $5,560,146, respectively, as of September 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 $8,666,660 and $8,614,194, respectively, as of September 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 $3,500,145 and $3,805,389 for the three months ended September 30, 2021 and 2020, respectively. Depreciation and amortization of property, plant and equipment was $11,659,670 and $11,301,703 for the nine months ended September 30, 2021 and 2020, respectively.