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Organization and Business Background (Tables)

6 Months Ended

Jun. 30, 2022

Organization and Business Background [Abstract]

Schedule of subsidiaries and variable interest entities

Name		Date of Incorporation or Establishment		Place of Incorporation or Establishment		Percentage of Ownership				Principal Activity
Subsidiary:
Dongfang Holding		November 13, 2006		BVI			100	%		Inactive investment holding
Shengde Holdings		February 25, 2009		State of Nevada			100	%		Investment holding
Baoding Shengde		June 1, 2009		PRC			100	%		Paper production and distribution
Variable interest entity (“VIE”):
Dongfang Paper		March 10, 1996		PRC			Control	*		Paper production and distribution

* Dongfang Paper is treated as a 100% controlled variable interest entity of the Company.

Schedule of aggregate carrying value of Dongfang Paper’s assets and liabilities

		June 30, 2022				December 31, 2021
ASSETS
Current Assets
Cash and bank balances		$	3,693,419			$	1,921,407
Restricted cash			-				-
Accounts receivable			3,820,123				4,867,759
Inventories			6,609,820				5,823,762
Prepayments and other current assets			17,304,373				19,942,878
Due from related parties			844,431				888,893
Total current assets			32,272,166				33,444,699
Prepayment on property, plant and equipment							41,877,755
Finance lease right-of-use assets, net			2,092,625				2,286,459
Property, plant, and equipment, net			152,023,115				116,054,387
Deferred tax asset non-current			10,005,097				9,547,741
Total Assets		$	196,393,003			$	203,211,041
LIABILITIES
Current Liabilities
Short-term bank loans		$	5,958,519			$	5,958,561
Current portion of long-term loans from credit union			4,410,406				2,289,945
Lease liability			224,219				210,161
Accounts payable			17,098				10,255
Advance from customers			37,709				39,694
Accrued payroll and employee benefits			220,367				279,513
Other payables and accrued liabilities			4,863,858				4,740,900
Income taxes payable			219,307				1,108,038
Total current liabilities			15,951,483				14,637,067
Loans from credit union			596,001				2,980,065
Deferred gain on sale-leaseback			100,820				155,110
Lease liability - non-current			20,299				152,233
Total liabilities		$	16,668,603			$	17,924,475

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Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

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Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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