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Property, plant and equipment, net
 3 Months Ended
Mar. 31, 2023
Property, Plant and Equipment [Abstract]  
Property, plant and equipment, net

(5) Property, plant and equipment, net

 

As of March 31, 2023 and December 31, 2022, property, plant and equipment consisted of the following:

 

   March 31,   December 31, 
   2023   2022 
Property, Plant, and Equipment:          
Land use rights  $58,466,092   $57,686,220 
Building and improvements   69,226,584    68,300,987 
Machinery and equipment   160,512,276    158,498,316 
Vehicles   690,832    681,617 
Construction in progress   1,251,510    1,239,698 
Totals   290,147,294    286,406,838 
Less: accumulated depreciation and amortization   (140,324,411)   (134,836,940)
Property, Plant and Equipment, net  $149,822,883   $151,569,898 

 

As of March 31, 2023 and December 31, 2022, land use rights represented twenty three 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 2068, respectively.

 

As of March 31, 2023 and December 31, 2022, certain property, plant and equipment of Dongfang Paper with net values of $93,136 and $280,466, 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 $4,334,537 and $4,301,204, respectively, as of March 31, 2023 and December 31, 2022 was pledged for the bank loan from Industrial & Commercial Bank of China (“ICBC”). Land use right of Tengsheng Paper with net value of $5,150,283 and $5,111,014, respectively, as of March 31, 2023 and December 31, 2022 was pledged for a long-term loan from credit union of Baoding Shengde. In addition, land use right of Tengsheng Paper with net value of $3,976,123 and $3,948,953, respectively, as of March 31, 2023 and December 31, 2022 was pledged for another long-term loan from credit union of Baoding Shengde. Land use right of Dongfang Paper with net value of $5,396,364 as of March 31, 2023 was pledged for a long-term loan from credit union of Tengsheng Paper. 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 $3,686,243 and $3,773,236 for the three months ended March 31, 2023 and 2022, respectively.