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Property, Plant and Equipment, Net
 9 Months Ended
Sep. 30, 2023
Property, Plant and Equipment [Abstract]  
Property, plant and equipment, net

(5) Property, plant and equipment, net

 

As of September 30, 2023 and December 31, 2022, property, plant and equipment consisted of the following:

 

   September 30,   December 31, 
   2023   2022 
Property, Plant, and Equipment:        
Land use rights  $59,027,166   $57,686,220 
Building and improvements   66,713,144    68,300,987 
Machinery and equipment   157,605,810    158,498,316 
Vehicles   661,187    681,617 
Construction in progress   1,515,537    1,239,698 
Totals   285,522,844    286,406,838 
Less: accumulated depreciation and amortization   (140,919,792)   (134,836,940)
Property, Plant and Equipment, net  $144,603,052   $151,569,898 

 

As of September 30, 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 September 30, 2023 and December 31, 2022, certain property, plant and equipment of Dongfang Paper with net values of $29,713 and $280,466, respectively, have been pledged pursuant to a long-term loan from credit union of Dongfang Paper. Land use right of Tengsheng Paper with net value of $4,872,178 and $5,111,014, respectively, as of September 30, 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 $3,755,317 and $3,948,953, respectively, as of September 30, 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 $5,098,721 as of September 30, 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 $3,423,231 and $3,609,985 for the three months ended September 30, 2023 and 2022, respectively. Depreciation and amortization of property, plant and equipment was $10,573,288 and $11,168,328 for the nine months ended September 30, 2023 and 2022, respectively.