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Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property, plant and equipment

(6) Property, plant and equipment

 

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

 

   December 31,   December 31, 
   2021   2020 
Property, Plant, and Equipment:        
Land use rights  $12,790,062   $12,497,601 
Building and improvements   74,609,698    81,233,162 
Machinery and equipment   170,149,367    163,787,807 
Vehicles   725,838    628,462 
Construction in progress   -    586,216 
Totals   258,274,965    258,733,248 
Less: accumulated depreciation and amortization   (131,687,537)   (113,590,606)
Property, Plant and Equipment, net  $126,587,428   $145,142,642 

 

As of December 31, 2021, and 2020, land use rights represented two parcel of state-owned lands located in Xushui District of Hebei Province in China, with lease terms of 50 years expiring from 2061 to 2066.

 

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

 

As of December 31, 2021, and 2020, certain property, plant and equipment of Dongfang Paper with net values of $1,130,333 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 $6,002,195 and $6,010,359, respectively, as of December 31, 2021 and 2020 was pledged for the bank loan from Bank of Industrial & Commercial Bank of China. Land use right of Hebei Tengsheng with net value of $5,690,261 and $5,560,146, respectively, as of December 31, 2021 and 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 $8,815,778 and $8,614,194, respectively, as of December 31, 2021 and 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 $15,304,686 and $15,793,854 for the years ended December 31, 2021, and 2020, respectively. No Impairment loss was recorded for the years ended December 31, 2021, and 2020.