XML 47 R31.htm IDEA: XBRL DOCUMENT v3.23.3
Organization and Business Background (Tables)
9 Months Ended
Sep. 30, 2023
Organization and Business Background [Abstract]  
Schedule of Subsidiaries and Variable Interest Entities As of September 30, 2023 and December 31, 2022, details of the Company’s subsidiaries and variable interest entities are as follows:
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
Qianrong  July 15, 2021  PRC   100%   New material technology service
               
Variable interest entity(“VIE”):              
Dongfang Paper  March 10, 1996  PRC   
Control*
   Paper production and distribution
Tengsheng Paper  April 07, 2011  PRC   
Control**
   Paper production and distribution
*Dongfang Paper is treated as a 100% controlled variable interest entity of the Company.
**Tengsheng Paper is 100% subsidiary of Dongfang Paper.
Schedule of Aggregate Carrying Value of Dongfang Paper’s Assets and Liabilities The aggregate carrying value of Dongfang Paper’s assets and liabilities (after elimination of intercompany transactions and balances) in the Company’s condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022 are as follows:
   September 30,   December 31, 
   2023   2022 
ASSETS        
         
Current Assets        
Cash and bank balances  $3,382,230   $3,427,717 
Restricted cash   -    - 
Accounts receivable   2,794,437    - 
Inventories   5,210,261    2,852,553 
Prepayments and other current assets   17,000,896    20,134,386 
Due from related parties   3,275,535    7,418,274 
           
Total current assets   31,663,359    33,832,930 
           
Prepayment on property, plant and equipment   877,462    1,031,502 
Operating lease right-of-use assets, net   562,612    672,722 
Finance lease right-of-use assets, net   -    1,939,970 
Property, plant, and equipment, net   138,342,091    143,534,690 
Deferred tax asset non-current        - 
           
Total Assets  $171,445,524   $181,011,814 
           
LIABILITIES          
           
Current Liabilities          
Short-term bank loans  $417,839   $5,598,311 
Current portion of long-term loans   2,479,178    4,835,885 
Lease liability   96,746    224,497 
Accounts payable   104,146    5,025 
Advance from customers   18,751    - 
Due to related parties   -    - 
Accrued payroll and employee benefits   253,833    143,156 
Other payables and accrued liabilities   3,421,890    4,887,584 
Income taxes payable   -    417,906 
           
Total current liabilities   6,792,383    16,112,364 
           
Long-term loans   4,751,765    40,203 
Deferred gain on sale-leaseback        52,314 
Lease liability - non-current   465,866    579,997 
           
Total liabilities  $12,010,014   $16,784,878