Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 27, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | false | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference [Text Block] | None | ||
Entity Information [Line Items] | |||
Entity Registrant Name | IT Tech Packaging, Inc. | ||
Entity Central Index Key | 0001358190 | ||
Entity File Number | 001-34577 | ||
Entity Tax Identification Number | 20-4158835 | ||
Entity Incorporation, State or Country Code | NV | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 4,476,376 | ||
Entity Contact Personnel [Line Items] | |||
Entity Address, Address Line One | Science Park | ||
Entity Address, Address Line Two | Juli Road | ||
Entity Address, Address Line Three | Xushui District | ||
Entity Address, City or Town | Baoding City | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 072550 | ||
Entity Phone Fax Numbers [Line Items] | |||
City Area Code | (86) | ||
Local Phone Number | 312-8698215 | ||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | ITP | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 10,065,920 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor [Table] | |
Auditor Name | WWC, P.C. |
Auditor Firm ID | 1171 |
Auditor Location | San Mateo, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and bank balances | $ 3,918,938 | $ 9,524,868 |
Restricted cash | 472,983 | |
Accounts receivable (net of allowance for doubtful accounts of $11,745 and $881,878 as of December 31, 2023 and December 31, 2022, respectively) | 575,526 | |
Inventories | 3,555,235 | 2,872,622 |
Prepayments and other current assets | 18,981,290 | 27,207,127 |
Total current assets | 28,357,901 | 47,166,475 |
Prepayment on property, plant and equipment | 1,031,502 | |
Operating lease right-of-use assets, net | 528,648 | 672,722 |
Finance lease right-of-use assets, net | 1,939,970 | |
Property, plant, and equipment, net | 163,974,022 | 151,569,898 |
Value-added tax recoverable | 1,883,078 | 2,066,666 |
Deferred tax asset non-current | ||
Total Assets | 194,743,649 | 204,447,233 |
Current Liabilities | ||
Short-term bank loans | 423,567 | 5,598,311 |
Current portion of long-term loans | 6,874,497 | 4,835,884 |
Lease liability | 100,484 | 224,497 |
Accounts payable | 4,991 | 5,025 |
Advance from customers | 136,167 | |
Accrued payroll and employee benefits | 237,842 | 165,986 |
Other payables and accrued liabilities | 12,912,517 | 5,665,558 |
Income taxes payable | 417,906 | |
Total current liabilities | 21,418,934 | 17,640,629 |
Long-term loans | 4,503,932 | 4,204,118 |
Deferred gain on sale-leaseback | 52,314 | |
Lease liability - non-current | 483,866 | 579,997 |
Derivative liability | 54 | 646,283 |
Total liabilities (including amounts of the consolidated VIE without recourse to the Company of $20,084,995 and $16,784,878 as of December 31, 2023 and 2022, respectively) | 26,406,786 | 23,123,341 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Common stock, 50,000,000 shares authorized, $0.001 par value per share, 10,065,920 shares issued and outstanding as of December 31, 2023 and 2022. | 10,066 | 10,066 |
Additional paid-in capital | 89,172,771 | 89,172,771 |
Statutory earnings reserve | 6,080,574 | 6,080,574 |
Accumulated other comprehensive loss | (10,555,534) | (7,514,540) |
Retained earnings | 83,628,986 | 93,575,021 |
Total stockholders’ equity | 168,336,863 | 181,323,892 |
Total Liabilities and Stockholders’ Equity | 194,743,649 | 204,447,233 |
Related Party | ||
Current Assets | ||
Due from related parties | 853,929 | 7,561,858 |
Current Liabilities | ||
Due to related parties | $ 728,869 | $ 727,462 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts (in Dollars) | $ 11,745 | $ 881,878 |
Consolidated VIE, liabilities (in Dollars) | $ 20,084,995 | $ 16,784,878 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued | 10,065,920 | 10,065,920 |
Common stock, shares outstanding | 10,065,920 | 10,065,920 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 86,546,950 | $ 100,352,434 |
Cost of sales | (85,547,065) | (95,598,238) |
Gross Profit | 999,885 | 4,754,196 |
Selling, general and administrative expenses | (9,075,475) | (10,058,723) |
Gain (Loss) from disposal and impairment of property, plant and equipment | (1,500,298) | |
Loss from Operations | (9,575,888) | (5,304,527) |
Other Income (Expense): | ||
Interest income | 315,096 | 24,264 |
Interest expense | (984,518) | (1,027,951) |
Gain on acquisition | 30,994 | |
Gain (Loss) on derivative liability | 646,229 | 1,417,251 |
Loss before Income Taxes | (9,599,081) | (4,859,969) |
Provision for Income Taxes | (346,954) | (11,711,339) |
Net Loss | (9,946,035) | (16,571,308) |
Other Comprehensive Loss | ||
Foreign currency translation adjustment | (3,040,994) | (18,010,708) |
Total Comprehensive Loss | $ (12,987,029) | $ (34,582,016) |
Losses Per Share: | ||
Basic Losses per Share (in Dollars per share) | $ (0.99) | $ (1.66) |
Outstanding – Basic (in Shares) | 10,065,920 | 9,972,788 |
Consolidated Statements of In_2
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Diluted Losses per Share | $ (0.99) | $ (1.66) |
Outstanding – Diluted | 10,065,920 | 9,972,788 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) | Common Stock | Additional Paid-in Capital | Statutory Earnings Reserve | Accumulated Other Comprehensive Income (loss) | Retained Earnings | Total |
Balance at Dec. 31, 2021 | $ 9,916 | $ 89,016,921 | $ 6,080,574 | $ 10,496,168 | $ 110,146,329 | $ 215,749,908 |
Balance (in Shares) at Dec. 31, 2021 | 9,915,920 | |||||
Issuance of shares to officer and directors | $ 150 | 155,850 | 156,000 | |||
Issuance of shares to officer and directors (in Shares) | 150,000 | |||||
Foreign currency translation adjustment | (18,010,708) | (18,010,708) | ||||
Net Loss | (16,571,308) | (16,571,308) | ||||
Balance at Dec. 31, 2022 | $ 10,066 | 89,172,771 | 6,080,574 | (7,514,540) | 93,575,021 | $ 181,323,892 |
Balance (in Shares) at Dec. 31, 2022 | 10,065,920 | 10,065,920 | ||||
Foreign currency translation adjustment | (3,040,994) | $ (3,040,994) | ||||
Net Loss | (9,946,035) | (9,946,035) | ||||
Balance at Dec. 31, 2023 | $ 10,066 | $ 89,172,771 | $ 6,080,574 | $ (10,555,534) | $ 83,628,986 | $ 168,336,863 |
Balance (in Shares) at Dec. 31, 2023 | 10,065,920 | 10,065,920 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net Loss | $ (9,946,035) | $ (16,571,308) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 14,225,990 | 14,788,036 |
(Gain) Loss on derivative liability | (646,229) | (1,417,251) |
(Gain) Loss from disposal and impairment of property, plant and equipment | 1,608,542 | |
(Recovery from) Allowance for bad debts | 34,193 | 843,779 |
Allowances for inventories, net | 2,970 | |
Share-based compensation and expenses | 156,000 | |
Gain on acquisition | (30,992) | |
Deferred tax | 10,261,104 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 280,970 | 3,750,196 |
Prepayments and other current assets | 9,322,532 | (3,976,010) |
Inventories | (736,267) | 2,554,072 |
Accounts payable | 50 | (4,496) |
Advance from customers | 136,686 | (37,452) |
Related parties | (478,025) | 444,291 |
Accrued payroll and employee benefits | 74,908 | (103,683) |
Other payables and accrued liabilities | (596,695) | 677,840 |
Income taxes payable | (412,504) | (614,738) |
Net Cash Provided by Operating Activities | 12,871,086 | 10,719,388 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (22,292,870) | (4,534,092) |
Proceeds from sale of property, plant and equipment | 53,573 | |
Acquisition of land | (6,364,439) | |
Net Cash Used in Investing Activities | (22,239,297) | (10,898,531) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of shares and warrants, net | ||
Proceeds from short term bank loans | 1,275,546 | 6,214,020 |
Proceeds from long term loans | 3,769,948 | 59,195 |
Repayment of bank loans | (7,647,610) | (6,071,952) |
Payment of capital lease obligation | (74,154) | (206,114) |
Loan to a related party (net) | 7,086,369 | (874,745) |
Net Cash Provided by (Used in) Financing Activities | 4,410,099 | (879,596) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (174,835) | (618,005) |
Net Decrease in Cash and Cash Equivalents | (5,132,947) | (1,676,744) |
Cash, Cash Equivalents and Restricted Cash - Beginning of Year | 9,524,868 | 11,201,612 |
Cash, Cash Equivalents and Restricted Cash - End of Year | 4,391,921 | 9,524,868 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for interest, net of capitalized interest cost | 1,484,461 | 320,568 |
Cash paid for income taxes | 759,458 | 2,049,911 |
Cash and bank balances | 3,918,938 | 9,524,868 |
Restricted cash | 472,983 | |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 4,391,921 | $ 9,524,868 |
Organization and Business Backg
Organization and Business Background | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Business Background [Abstract] | |
Organization and Business Background | (1) Organization and Business Background IT Tech Packaging, Inc. (the “Company”) was incorporated in the State of Nevada on December 9, 2005, under the name “Carlateral, Inc.” Through the steps described immediately below, we became the holding company for Hebei Baoding Dongfang Paper Milling Company Limited (“Dongfang Paper”), a producer and distributor of paper products in China, on October 29, 2007. Effective on August 1, 2018, we changed our corporate name to IT Tech Packaging, Inc.. The name change was effected through a parent/subsidiary short-form merger of IT Tech Packaging, Inc., our wholly-owned Nevada subsidiary formed solely for the purpose of the name change, with and into us. We were the surviving entity. In connection with the name change, our common stock began being traded under a new NYSE symbol, “ITP,” and a new CUSIP number, 46527C100, at such time. On June 9, 2022, the Board of Directors of the Company approved a reverse stock split of the Company’s issued and outstanding shares of common stock, par value $0.001 per share (the “Common Stock”), at a ratio of 1-for-10 (the “Reverse Stock Split”). The Reverse Stock Split become effective on July 7, 2022 (the “Effective Date”), and the shares began trading on the split-adjusted basis on the NYSE American under the Company’s existing trading symbol “ITP” at market open on July 8, 2022. The new CUSIP number following the Reverse Stock Split will be 46527C 209. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the Reverse Stock Split. On October 29, 2007, pursuant to an agreement and plan of merger (the “Merger Agreement”), the Company acquired Dongfang Zhiye Holding Limited (“Dongfang Holding”), a corporation formed on November 13, 2006 under the laws of the British Virgin Islands, and issued the shareholders of Dongfang Holding an aggregate of 7,450,497 (as adjusted for a four-for-one reverse stock split effected in November 2009) shares of our common stock, which shares were distributed pro-rata to the shareholders of Dongfang Holding in accordance with their respective ownership interests in Dongfang Holding. At the time of the Merger Agreement, Dongfang Holding owned all of the issued and outstanding stock and ownership of Dongfang Paper and such shares of Dongfang Paper were held in trust with Zhenyong Liu, Xiaodong Liu and Shuangxi Zhao, for Mr. Liu, Mr. Liu and Mr. Zhao (the original shareholders of Dongfang Paper) to exercise control over the disposition of Dongfang Holding’s shares in Dongfang Paper on Dongfang Holding’s behalf until Dongfang Holding successfully completed the change in registration of Dongfang Paper’s capital with the relevant PRC Administration of Industry and Commerce as the 100% owner of Dongfang Paper’s shares. As a result of the merger transaction, Dongfang Holding became a wholly owned subsidiary of the Company, and Dongfang Holding’s wholly owned subsidiary, Dongfang Paper, became an indirectly owned subsidiary of the Company. Dongfang Holding, as the 100% owner of Dongfang Paper, was unable to complete the registration of Dongfang Paper’s capital under its name within the proper time limits set forth under PRC law. In connection with the consummation of the restructuring transactions described below, Dongfang Holding directed the trustees to return the shares of Dongfang Paper to their original shareholders, and the original Dongfang Paper shareholders entered into certain agreements with Baoding Shengde Paper Co., Ltd. (“Baoding Shengde”) to transfer the control of Dongfang Paper over to Baoding Shengde. On June 24, 2009, the Company consummated a number of restructuring transactions pursuant to which it acquired all of the issued and outstanding shares of Shengde Holdings Inc., a Nevada corporation. Shengde Holdings Inc. was incorporated in the State of Nevada on February 25, 2009. On June 1, 2009, Shengde Holdings Inc. incorporated Baoding Shengde, a limited liability company organized under the laws of the PRC. Because Baoding Shengde is a wholly-owned subsidiary of Shengde Holdings Inc., it is regarded as a wholly foreign-owned entity under PRC law. To ensure proper compliance of the Company’s control over the ownership and operations of Dongfang Paper with certain PRC regulations, on June 24, 2009, the Company entered into a series of contractual agreements (the “Contractual Agreements”) with Dongfang Paper and Dongfang Paper Equity Owners via the Company’s wholly owned subsidiary Shengde Holdings Inc. (“Shengde Holdings”) a Nevada corporation and Baoding Shengde Paper Co., Ltd. (“Baoding Shengde”), a wholly foreign-owned enterprise in the PRC with an original registered capital of $10,000,000 (subsequently increased to $60,000,000 in June 2010). Baoding Shengde is mainly engaged in production and distribution of digital photo paper and single-use face masks and is 100% owned by Shengde Holdings. Prior to February 10, 2010, the Contractual Agreements included (i) Exclusive Technical Service and Business Consulting Agreement, which generally provides that Baoding Shengde shall provide exclusive technical, business and management consulting services to Dongfang Paper, in exchange for service fees including a fee equivalent to 80% of Dongfang Paper’s total annual net profits; (ii) Loan Agreement, which provides that Baoding Shengde will make a loan in the aggregate principal amount of $10,000,000 to Dongfang Paper Equity Owners in exchange for each such shareholder agreeing to contribute all of its proceeds from the loan to the registered capital of Dongfang Paper; (iii) Call Option Agreement, which generally provides, among other things, that Dongfang Paper Equity Owners irrevocably grant to Baoding Shengde an option to purchase all or part of each owner’s equity interest in Dongfang Paper. The exercise price for the options shall be RMB1 which Baoding Shengde should pay to each of Dongfang Paper Equity Owner for all their equity interests in Dongfang Paper; (iv) Share Pledge Agreement, which provides that Dongfang Paper Equity Owners will pledge all of their equity interests in Dongfang Paper to Baoding Shengde as security for their obligations under the other agreements described in this section. Specifically, Baoding Shengde is entitled to dispose of the pledged equity interests in the event that Dongfang Paper Equity Owners breach their obligations under the Loan Agreement or Dongfang Paper fails to pay the service fees to Baoding Shengde pursuant to the Exclusive Technical Service and Business Consulting Agreement; and (v) Proxy Agreement, which provides that Dongfang Paper Equity Owners shall irrevocably entrust a designee of Baoding Shengde with such shareholder’s voting rights and the right to represent such shareholder to exercise such owner’s rights at any equity owners’ meeting of Dongfang Paper or with respect to any equity owner action to be taken in accordance with the laws and Dongfang Paper’s Articles of Association. The terms of the agreement are binding on the parties for as long as Dongfang Paper Equity Owners continue to hold any equity interest in Dongfang Paper. A Dongfang Paper Equity Owner will cease to be a party to the agreement once it transfers its equity interests with the prior approval of Baoding Shengde. As the Company had controlled Dongfang Paper since July 16, 2007 through Dongfang Holding and the trust until June 24, 2009 and continued to control Dongfang Paper through Baoding Shengde and the Contractual Agreements, the execution of the Contractual Agreements is considered as a business combination under common control. On February 10, 2010, Baoding Shengde and the Dongfang Paper Equity Owners entered into a Termination of Loan Agreement to terminate the above-mentioned $10,000,000 Loan Agreement. Because of the Company’s decision to fund future business expansions through Baoding Shengde instead of Dongfang Paper, the $10,000,000 loan contemplated was never made prior to the point of termination. The parties believe the termination of the Loan Agreement does not in itself compromise the effective control of the Company over Dongfang Paper and its businesses in the PRC. An agreement was also entered into among Baoding Shengde, Dongfang Paper and the Dongfang Paper Equity Owners on December 31, 2010, reiterating that Baoding Shengde is entitled to 100% of the distributable profit of Dongfang Paper, pursuant to the above- mentioned Contractual Agreements. In addition, Dongfang Paper and the Dongfang Paper Equity Owners shall not declare any of Dongfang Paper’s unappropriated earnings as dividend, including the unappropriated earnings of Dongfang Paper from its establishment to 2010 and thereafter. On June 25, 2019, Dongfang Paper entered into an acquisition agreement with the shareholder of Hebei Tengsheng Paper Co., Ltd. (“Tengsheng Paper”), a limited liability company organized under the laws of the PRC, pursuant to which Dongfang Paper will acquire Tengsheng Paper. Full payment of the consideration in the amount of RMB320 million (approximately $45 million) was made on February 23, 2022. QianrongQianhui Hebei Technology Co., Ltd (“Qianrong”), a wholly owned subsidiary of Shengde holding, was incorporated on July 15, 2021. It is a service provider of high quality material solutions for textile, cosmetics and paper production. The Company has no direct equity interest in Dongfang Paper. However, through the Contractual Agreements described above, the Company is found to be the primary beneficiary (the “Primary Beneficiary”) of Dongfang Paper and is deemed to have the effective control over Dongfang Paper’s activities that most significantly affect its economic performance, resulting in Dongfang Paper being treated as a controlled variable interest entity of the Company in accordance with Topic 810 - Consolidation of the Accounting Standards Codification (the “ASC”) issued by the Financial Accounting Standard Board (the “FASB”). The revenue generated from Dongfang Paper and Tengsheng Paper for the years ended December 31, 2023 and 2022 was accounted for 99.88%%and 99.74% of the Company’s total revenue, respectively. Dongfang Paper and Tengsheng Paper also accounted for 94.93% and 88.54% of the total assets of the Company as of December 31, 2023 and 2022, respectively. As of December 31, 2023, and 2022, details of the Company’s subsidiaries and variable interest entity are as follows: Date of Place of Percentage Incorporation Incorporation or of Name or Establishment Establishment 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. However, uncertainties in the PRC legal system could cause the Company’s current ownership structure to be found to be in violation of any existing and/or future PRC laws or regulations and could limit the Company’s ability, through its subsidiary, to enforce its rights under these contractual arrangements. Furthermore, shareholders of the VIE may have interests that are different than those of the Company, which could potentially increase the risk that they would seek to act contrary to the terms of the aforementioned agreements. In addition, if the current structure or any of the contractual arrangements were found to be in violation of any existing or future PRC law, the Company may be subject to penalties, which may include, but not be limited to, the cancellation or revocation of the Company’s business and operating licenses, being required to restructure the Company’s operations or being required to discontinue the Company’s operating activities. The imposition of any of these or other penalties may result in a material and adverse effect on the Company’s ability to conduct its operations. In such case, the Company may not be able to operate or control the VIE, which may result in deconsolidation of the VIE. The Company believes the possibility that it will no longer be able to control and consolidate its VIE will occur as a result of the aforementioned risks and uncertainties is remote. The Company has aggregated the financial information of Dongfang Paper in the table below. The aggregate carrying value of Dongfang Paper’s assets and liabilities (after elimination of intercompany transactions and balances) in the Company’s consolidated balance sheets as of December 31, 2023, and 2022 are as follows: December 31, December 31, 2023 2022 ASSETS Current Assets Cash and bank balances $ 2,807,608 $ 3,427,717 Restricted cash 472,983 - Accounts receivable 575,526 - Inventories 3,555,235 2,852,553 Prepayments and other current assets 18,617,351 20,134,386 Due from related parties 289,173 7,418,274 Total current assets 26,317,876 33,832,930 Prepayment on property, plant and equipment - 1,031,502 Operating lease right-of-use assets, net 528,648 672,722 Finance lease right-of-use assets, net - 1,939,970 Property, plant, and equipment, net 158,027,099 143,534,690 Deferred tax asset non-current - - Total Assets $ 184,873,623 $ 181,011,814 LIABILITIES Current Liabilities Short-term bank loans $ - $ 5,598,311 Current portion of long-term loans 2,780,014 4,835,885 Lease liability 100,484 224,497 Accounts payable 4,991 5,025 Advance from customers 136,167 - Accrued payroll and employee benefits 231,568 143,156 Other payables and accrued liabilities 11,843,973 4,887,584 Income taxes payable - 417,906 Total current liabilities 15,097,197 16,112,364 Long-term loans 4,503,932 40,203 Deferred gain on sale-leaseback - 52,314 Lease liability - non-current 483,866 579,997 Total liabilities $ 20,084,995 $ 16,784,878 The Company and its consolidated subsidiaries are not required to provide financial support to the VIE, and no creditor (or beneficial interest holders) of the VIE have recourse to the assets of Company unless the Company separately agrees to be subject to such claims. There are no terms in any agreements or arrangements, implicit or explicit, which require the Company or its subsidiaries to provide financial support to the VIE. However, if the VIE does require financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to the VIE. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | (2) Basis of Presentation and Significant Accounting Policies Basis of Consolidation The consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries and variable interest entity. All significant inter-company balances, transactions and cash flows are eliminated on consolidation. Foreign Currency Translation The Company accounts for foreign currency translation pursuant to ASC Topic 830, Foreign Currency Matters Under ASC Topic 830-30, all assets and liabilities are translated into United States dollars using the current exchange rate at the end of each fiscal period. The current exchange rates used by the Company as of December 31, 2023, and 2022 to translate the Chinese RMB to the U.S. Dollars are 7.0827:1, and 6.9646:1, respectively. Revenues and expenses are translated using the average exchange rates prevailing throughout the respective years at 7.0558:1 and 6.75731 for the years ended December 31, 2023, and 2022, respectively. Translation adjustments are included in other comprehensive income (loss). Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of December 31, 2023, and 2022, and revenues and expenses for the years ended December 31, 2023, and 2022. The most significant estimates relate to allowance for uncollectible accounts receivable, inventory valuation, useful lives and impairment for property, plant and equipment, valuation allowance for deferred tax assets and contingencies. Actual results could differ from those estimates made by management. Accounts Receivable Trade accounts receivable are recorded on shipment of products to customers. The trade receivables are all without customer collateral and interest is not accrued on past due accounts. Periodically, management reviews the adequacy of its provision for doubtful accounts based on historical bad debt expense results and current economic conditions using factors based on the aging of its accounts receivable. Additionally, the Company may identify additional allowance requirements based on indications that a specific customer may be experiencing financial difficulties. Actual bad debt results could differ materially from these estimates. As of December 31, 2023, and 2022, the balance of allowance for doubtful accounts was $881,878 and $69,053, respectively; and the movement of the provision of the doubtful accounts is as below. While management uses the best information available upon which to base estimates, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used for the purposes of analysis. December 31, December 31, Allowance of doubtful accounts 2023 2022 Opening balance $ 881,878 $ 69,053 Provision (Reversal) for the year (858,689 ) 843,779 Exchange difference (11,444 ) (30,954 ) Closing balance $ 11,745 $ 881,878 Inventories Inventories consist principally of raw materials and finished goods, and are stated at the lower of cost (average cost method) or market. Cost includes labor, raw materials, and allocated overhead. Provision in inventories were $ nil Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation and any impairment losses. Major renewals, betterments, and improvements are capitalized to the asset accounts while replacements, maintenance, and repairs, which do not improve or extend the lives of the respective assets, are expensed to operations. At the time property, plant, and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation or amortization accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to operations. Construction-in-progress is stated at cost and capitalized as expenses are incurred or as payments are made pursuant to relevant construction contracts. Contract retention is recorded as accrued liability. Construction in progress is not depreciated until project completion and the constructed property being placed in service, at which time the capitalized balance will be transferred to appropriate account of property, plant and equipment. The Company depreciates property, plant, and equipment using the straight-line method as follows: Land use right Over the lease term Building and improvements 30 years Machinery and equipment 5-15 years Vehicles 15 years Valuation of long-lived asset The Company reviews the carrying value of long-lived assets to be held and used when events and circumstances warrants such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset and intangible assets. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets and intangible assets to be disposed are determined in a similar manner, except that fair market values are reduced for the cost to dispose. Statutory Reserves According to the laws and regulations in the PRC, the Company is required to provide for certain statutory funds, namely, a reserve fund by an appropriation from net profit after taxation but before dividend distribution based on the local statutory financial statements of the PRC subsidiaries and variable interest entity prepared in accordance with the PRC accounting principles and relevant financial regulations. Each of the Company’s wholly owned subsidiary and variable interest entity in the PRC are required to allocate at least 10% of its net profit to the reserve fund until the balance of such fund has reached 50% of its registered capital. Appropriations of additional reserve fund are determined at the discretion of its directors. The reserve fund can only be used, upon approval by the relevant authority, to offset accumulated losses or increase capital. For the years ended December 31, 2023, and 2022, IT Tech Packaging made transfers of $ nil Employee Benefit Plan Full time employees of the PRC entities participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance and other welfare benefits are provided to employees. The total provision for such employee benefits was $ nil Revenue Recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a company expects to be entitled from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise, performance obligations are combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. The Company has addressed whether various goods and services promised to the customer represent distinct performance obligations. The Company applied the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct performance obligations. The Company’s revenue is primary derived from sales of paper products. The Company recognizes revenue when goods are delivered, when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist, and collectability is reasonably assured. Goods are considered delivered when customer’s truck picks up goods at the Company’s finished goods inventory warehouse. Shipping Cost Substantially all customers use their own trucks or hire commercial trucking companies to pick up goods from the Company. The Company usually incurs no shipping cost for delivery of goods to customers. For those rare situations where products are not shipped utilizing customer specified shipping services, the Company charges customers a shipping fee which is included in net revenues and was not material. Freight-in and handling costs incurred by the Company with respect to purchased goods are recorded as a component of inventory cost and charged to cost of sales when the inventory items are sold. Advertising The Company expenses all advertising and promotion costs as incurred. The Company incurred $ nil Research and development costs Research and development costs are expensed as incurred and included in selling, general and administrative expenses. Research and development expenses incurred $90,766 and $145,538 for the years ended December 31, 2023, and 2022, respectively. Borrowing costs Borrowing costs attributable directly to the acquisition, construction or production of qualifying assets which require a substantial period of time to be ready for their intended use or sale, are capitalized as part of the cost of those assets. Income earned on temporary investments of specific borrowings pending their expenditure on those assets is deducted from borrowing costs capitalized. All other borrowing costs are recognized in interest expenses in the period in which they are incurred. Government subsidies A government subsidy is not recognized until there is reasonable assurance that: (a) the enterprise will comply with the conditions attached to the grant; and(b)the grant will be received. When the Company receives government subsidies but the conditions attached to the grants have not been fulfilled, such government subsidies are deferred and recorded under other payables and accrued expenses, and other long-term liability. The classification of short-term or long-term liabilities is depended on the management’s expectation of when the conditions attached to the grant can be fulfilled. For the years ended December 31, 2023, and 2022, the Company received government subsidies of $ nil Income Taxes The Company accounts for income taxes pursuant to ASC Topic 740, Income Taxes. Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. ASC Topic 740 also requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Realization of deferred tax assets, including those related to the U.S. net operating loss carry-forwards, are dependent upon future earnings, if any, of which the timing and amount are uncertain. The Company adopted ASC Topic 740-10-05, Income Tax The Company’s policy on classification of all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expense. Value Added Tax Both the PRC subsidiaries and variable interest entity of the Company are subject to value added tax (“VAT”) imposed by the PRC government on its purchase and sales of goods. The output VAT is charged to customers who purchase goods from the Company and the input VAT is paid when the Company purchases goods from its vendors. VAT rate is 17% (before May 1, 2018), 16% (after May 1, 2018) and 13% (after April 1, 2019) in general, depending on the types of products purchased and sold. The input VAT can be offset against the output VAT. Debit balance of VAT payable represents a credit against future collection of output VAT instead of a receivable due from government. Comprehensive Income (Loss) The Company presents comprehensive income (loss) in accordance with ASC Topic 220, Comprehensive Income Earnings Per Share Basic earnings per share is computed by dividing the net income attributable to the common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There were no potentially dilutive securities that were in-the-money that were outstanding during the years ended December 31, 2023. Share-Based Compensation The Company uses the fair value recognition provision of ASC Topic 718, Compensation-Stock Compensation, The Company also applies the provisions of ASC Topic 505-50, Equity Based Payments to Non-Employees Reverse stock split On June 9, 2022, the Board of Directors of the Company approved the Reverse Stock Split, at a ratio of 1-for-10, pursuant to Section 78.207 of the Nevada Revised Statutes (“NRS”). The Reverse Stock Split was effected by the Company filing of a Certificate of Change Pursuant to NRS 78.209 with the Secretary of State of the State of Nevada on July 7, 2022. The par value per share of our stock remains unchanged at $0.001 per share after the Reverse Stock Split. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the Reverse Stock Split. Fair Value Measurements The Company has adopted ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. It does not require any new fair value measurement, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. The Company estimates the fair value of financial instruments using the available market information and valuation methods. Considerable judgment is required in estimating fair value. Accordingly, the estimates of fair value may not be indicative of the amounts that the Company could realize in a current market exchange. As of December 31, 2023, and 2022, the carrying value of the Company’s short term financial instruments, such as cash and bank balances, accounts receivable, accounts and notes payable, short-term bank loans and balance due to related parties, approximate at their fair values because of the short maturity of these instruments; while loans from credit union approximates at their fair value as the interest rates thereon are close to the market rates of interest published by the People’s Bank of China. Derivative liabilities are measured at fair value on a recurring basis. Non-Recurring Fair Value Measurements The Company reviews long-lived assets for impairment annually or more frequently if events or changes in circumstances indicate the possibility of impairment. For the continuing operations, long-lived assets are measured at fair value on a nonrecurring basis when there is an indicator of impairment, and they are recorded at fair value only when impairment is recognized. For discontinued operations, long-lived assets are measured at the lower of carrying amount or fair value less cost to sell. The fair value of these assets was determined using models with significant unobservable inputs which were classified as Level 3 inputs, primarily the discounted future cash flow. Recently issued accounting pronouncements In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2023 | |
Restricted Cash [Abstract] | |
Restricted Cash | (3) Restricted Cash Restricted cash of $472,983 as of December 31, 2023 was presented for the cash deposited at the Industrial and Commercial Bank of China of Tengsheng Paper. The deposit was restricted due to the personal legal proceeding of Mr. Ping, the Legal Representative of Tengsheng Paper. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
Inventories | (4) Inventories Raw materials inventory includes mainly recycled paper and gas. Finished goods include mainly products of corrugating medium paper and offset printing paper. Inventories consisted of the following as of and December 31, 2023, and 2022: December 31, December 31, 2023 2022 Raw Materials Recycled paper board $ 198,744 $ 1,258,161 Recycled white scrap paper 10,647 10,809 Gas 21,428 42,237 Base paper and other raw materials 142,149 160,229 372,968 1,471,436 Semi-finished Goods 300,207 132,810 Finished Goods 2,885,019 1,268,376 Total inventory, gross 3,558,194 2,872,622 Inventory reserve (2,959 ) - Total inventory, net $ 3,555,235 $ 2,872,622 |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and Other Current Assets [Abstract] | |
Prepayments and other current assets | (5) Prepayments and other current assets Prepayments and other current assets consisted of the following as of December 31, 2023, and 2022: December 31, December 31, 2023 2022 Prepaid land lease $ - $ 172,300 Prepayment for purchase of materials 5,446,823 12,941,951 Value-added tax recoverable 13,409,459 13,640,868 Prepaid gas 116,372 27,462 Others 8,636 424,546 $ 18,981,290 $ 27,207,127 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | (6) Property, plant and equipment As of December 31, 2023, and 2022, property, plant and equipment consisted of the following: December 31, December 31, 2023 2022 Property, Plant, and Equipment: Land use rights $ 81,504,608 $ 57,686,220 Building and improvements 67,939,059 68,300,987 Machinery and equipment 158,629,858 158,498,316 Vehicles 348,209 681,617 Construction in progress - 1,239,698 Totals 308,421,734 286,406,838 Less: accumulated depreciation and amortization (144,447,712 ) (134,836,940 ) Property, Plant and Equipment, net $ 163,974,022 $ 151,569,898 As of December 31, 2023, land use rights represented twenty-three parcel of state-owned lands located in Xushui District and Wei County of Hebei Province in China, with lease terms of 50 years expiring from 2061 to 2068. As of December 31, 2022, land use rights represented twenty-three 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, respectively. As of December 31, 2023 and 2022, certain property, plant and equipment of Dongfang Paper with net values of $ nil Depreciation and amortization of property, plant and equipment was $14,225,990 and $14,788,036 for the years ended December 31, 2023, and 2022, respectively. Loss from disposal and impairment of property, plant and equipment of $1,500,298 and $ nil |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | (7) Leases Financing with Sale-Leaseback The Company entered into a sale-leaseback arrangement (the “Lease Financing Agreement”) with TAC Leasing Co., Ltd.(“TLCL”) on August 6, 2020, for a total financing proceeds in the amount of RMB 16 million (approximately US$2.3 million). Under the sale-leaseback arrangement, Tengsheng Paper sold the Leased Equipment to TLCL for 16 million (approximately US$2.3 million). Concurrent with the sale of equipment, Tengsheng Paper leases back the equipment sold to TLCL for a lease term of three years. At the end of the lease term, Tengsheng Paper may pay a nominal purchase price of RMB 100 (approximately $14) to TLCL and buy back the Leased Equipment. The Leased Equipment in amount of $2,349,452 was recorded as right of use assets and the net present value of the minimum lease payments was recorded as lease liability and calculated with TLCL’s implicit interest rate of 15.6% per annum and stated at $567,099 at the inception of the lease on August 17, 2020. Tengsheng Paper made payments due according to the schedule. On July 17, 2023, the Company made a final payment on outstanding obligations and bought back the Lease Equipment at nominal price according to the agreement. The lease assets were reclassified as own assets and balance of Leased Equipment net of amortization were $ nil Operating lease as lessor The Company has a non-cancellable agreement to lease plant to tenant under operating lease for 1 year from November 2023 to November 2024. The lease does not contain contingent payments. The rental income of the year was paid in advance by the tenant in December 2023. Operating lease as lessee The Company leases space under non-cancelable operating leases for plant and production equipment. The lease does not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the lease does not contain contingent rent provisions. The lease include option to renew in condition that it is agreed by the landlord before expiry. Therefore, the majority of renewals to extend the lease terms are not included in its right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluate the renewal options and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term. As the Company’s leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The components of the Company’s lease expense are as follows: Year Ended 2023 RMB Operating lease cost 141,189 Short-term lease cost - Lease cost 141,189 Supplemental cash flow information related to its operating lease was as follows for the period ended December 31, 2023: Year Ended 2023 RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating lease 141,189 Maturities of its lease liabilities for all operating lease are as follows as of December 31, 2023: December 31, Amount 2024 141,189 2025 141,189 2026 141,189 2027 141,189 2028 141,189 Thereafter - Total operating lease payments $ 705,945 Less: Interest (121,595 ) Present value of lease liabilities 584,350 Less: current portion, record in current liabilities (100,484 ) Present value of lease liabilities 483,866 The weighted average remaining lease terms and discount rates for all of its operating leases were as follows as of December 31, 2023: December 31, 2023 Remaining lease term and discount rate: RMB Weighted average remaining lease term (years) 4.6 Weighted average discount rate 7.56 % |
Loans Payable
Loans Payable | 12 Months Ended |
Dec. 31, 2023 | |
Loans Payable [Abstract] | |
Loans Payable | (8) Loans Payable Short-term bank loans December 31, December 31, 2023 2022 Industrial and Commercial Bank of China (“ICBC”) Loan 1 $ - $ 5,023,978 ICBC Loan 2 - 287,167 ICBC Loan 3 - 143,583 China Construction Bank Loan - 143,583 ICBC Loan 4 423,567 - ICBC Loan 5 2,824 - ICBC Loan 6 70,594 - ICBC Loan 7 350,149 - Total short-term bank loans $ 423,567 $ 5,598,311 On November 10, 2022, the Company entered into a working capital loan agreement with the ICBC. The loan was secured by the land use right of Dongfang Paper as collateral for the benefit of the bank and guaranteed by Mr. Liu. The loan bore a fixed interest rate of 4.785% per annum. The Company repaid $71,743 in May 2023 and paid off the remaining balance of the loan in August 2023. The balance of the loan was $ nil On November 30, 2022, the Company entered into a working capital loan agreement with the ICBC, with a balance of $ nil On November 30, 2022, the Company entered into a working capital loan agreement with the ICBC, with a balance of $ nil On July 29, 2022, the Company entered into a working capital loan agreement with the China Construction Bank, with a balance of $ nil On May 29, 2023, the Company entered into a working capital loan agreement with the ICBC, to borrow $423,567 at a fixed interest rate of 4.25% per annum. The loan was repaid in November 2023. On June 29, 2023, the Company entered into a working capital loan agreement with the ICBC, to borrow $423,567 at a fixed interest rate of 3.55% per annum. The loan was repaid in September 2023.. On September 15, 2023, the Company entered into a working capital loan agreement with the ICBC, with a balance of $2,824 as of December 31, 2023. The loan bears a fixed interest rate of 3.45% per annum. The loan will be due by September 14, 2024. On September 22, 2023, the Company entered into a working capital loan agreement with the ICBC, with a balance of $ 70,594 as of December 31, 2023. The loan bears a fixed interest rate of 3.45% per annum. The loan will be due by September 21, 2024. On September 22, 2023, the Company entered into a working capital loan agreement with the ICBC, with a balance of $ 350,149 as of December 31, 2023. The loan bears a fixed interest rate of 3.45% per annum. The loan will be due by September 21, 2024. As of December 31, 2022, there were guaranteed short-term borrowings of $5,023,978 and unsecured bank loans of $574,333. As of December 31, 2023, there were guaranteed short-term borrowings of $ nil The average short-term borrowing rates for the years ended December 31, 2023, and 2022 were approximately 4.48% and 4.72%, respectively. Long-term loans As of December 31, 2023, and 2022, long-term loan balance is $11,378,429 and $9,040,002, respectively. December 31, December 31, 2023 2022 Rural Credit Union of Xushui District Loan 1 $ - $ 1,234,816 Rural Credit Union of Xushui District Loan 2 3,528,315 3,589,582 Rural Credit Union of Xushui District Loan 3 2,259,026 2,297,332 Rural Credit Union of Xushui District Loan 4 1,835,458 1,866,582 Rural Credit Union of Xushui District Loan 5 2,541,404 - Rural Credit Union of Xushui District Loan 6 1,214,226 - Yujiangna - 51,690 Total 11,378,429 9,040,002 Less: Current portion of long-term loans (6,874,497 ) (4,835,884 ) Long-term loans $ 4,503,932 $ 4,204,118 As of Dec 31, 2023, the Company’s long-term debt repayments for the next coming years were as follows: Amount Fiscal year 2024 6,874,497 2025 3,374,419 2026 & after 1,129,513 Total 11,378,429 On April 16, 2014, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 5 years, which was originally due in various installments from June 21, 2014 to November 18, 2018. The loan was guaranteed by an independent third party. Interest payment was due quarterly and bore a rate of 7.68% per annum. Effective from November 15, 2022, the interest rate was reduced to 7% per annum. On November 6, 2018, the loan was renewed for additional 5 years and will be due and payable in various installments from December 21, 2018 to November 5, 2023. The loan was fully repaid in December 2023. As of December 31, 2023 and 2022, total outstanding loan balance was $ nil On July 15, 2013, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 5 years, which was originally due and payable in various installments from December 21, 2013 to July 26, 2018. On June 21, 2018, the loan was extended for additional 5 years and was due and payable in various installments from December 21, 2018 to June 20, 2023. On August 24, 2023, the loan was extended for another 3 years and will be due and payable on August 24, 2026. The loan is secured by certain of the Company’s manufacturing equipment with net book value of $ nil On April 17, 2019, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 2 years, which was due and payable in various installments from August 21, 2019 to April 16, 2021. The loan was renewed on March 22, 2021 and December 24, 2021 and extended for additional 3 years in total, which will be due on April 16, 2024 according to the new schedule. The loan is secured by Tengsheng Paper with its land use right as collateral for the benefit of the credit union. Interest payment is due quarterly and bore a rate of 7.68% per annum. Effective from November 15, 2022, the interest rate was reduced to 7% per annum. As of December 31, 2023 and 2022, the total outstanding loan balance was $2,259,026 and $2,297,332, respectively, which are presented as current liabilities and non-current liabilities in the consolidated balance sheet as of December 31, 2023 and 2022, respectively. On December 12, 2019, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 2 years, which is due and payable in various installments from June 21, 2020 to December 11, 2021. The loan was renewed on March 22, 2021 and December 24, 2021 and extended for additional 3 years in total, which will be due on December 11, 2024 according to the new schedule. The loan is secured by Tengsheng Paper with its land use right as collateral for the benefit of the credit union. Interest payment is due monthly and bore a rate of 7.56% per annum. Effective from November 15, 2022, the interest rate was reduced to 7% per annum. As of December 31, 2023 and 2022, the total outstanding loan balance was $1,835,458 and $1,866,582, respectively, which are presented as current liabilities and non-current liabilities in the consolidated balance sheet as of December 31, 2023 and 2022, respectively. On July 1, 2022, the Company entered into a loan agreement with Jiangna Yu, a customer of the Company, pursuant to which the Company borrowed RMB 400,000 from Jiangna Yu for a term of five years. The loan is payable in monthly installment of RMB10,667 from July 2022 to July 2027. The company repaid the loan in November 2023. As of December 31, 2023 and 2022, the total outstanding loan balance was $ nil nil nil On February 26, 2023, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 2 years, which is due and payable in various installments from August 21, 2023 to February 24, 2025. The loan is secured by Dongfang Paper with its land use right as collateral for the benefit of the credit union. Interest payment is due monthly and bore a rate of 7% per annum. As of December 31, 2023, the total outstanding loan balance was $2,541,404. Out of the total outstanding loan balance, current portion amounted was $1,284,820, which is presented as current liabilities in the consolidated balance sheet and the remaining balance of $1,256,584 is presented as non-current liabilities in the consolidated balance sheet as of December 31, 2023. On December 5, 2023, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 3 years, which was due in various installments from June 21, 2024 to December 5, 2026. The loan was guaranteed by an independent third party. Interest payment was due monthly and bore a rate of 7% per annum. As of December 31, 2023, total outstanding loan balance was $1,214,226. Out of the total outstanding loan balance, current portion amounted $225,903, which is presented as current liabilities and the remaining balance of $ 988,323 is presented as non-current liabilities in the consolidated balance sheet as of December 31, 2023. Total interest expenses for the short-term bank loans and long-term loans for the years ended December 31, 2023, and 2022 were $977,678 and $988,997 respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (9) Related Party Transactions Mr. Zhenyong Liu has loaned money to Dongfang Paper for working capital purposes over a period of time. On January 1, 2013, Dongfang Paper and Mr. Zhenyong Liu renewed the three-year term loan previously entered on January 1, 2010, and extended the maturity date further to December 31, 2015. On December 31, 2015, the Company paid off the loan of $2,249,279, together with interest of $391,374 for the period from 2013 to 2015. Approximately $361,915 and $368,052 of interest were outstanding to Mr. Zhenyong Liu, which were recorded in other payables and accrued liabilities as part of the current liabilities in the consolidated balance sheet as of December 31, 2023, and 2022, respectively. On December 10, 2014, Mr. Zhenyong Liu provided a loan to the Company, amounted to $8,742,278 to Dongfang Paper for working capital purpose with an interest rate of 4.35% per annum, which was based on the primary lending rate of People’s Bank of China. The unsecured loan was provided on December 10, 2014, and would be originally due on December 10, 2017. During the year of 2016, the Company repaid $6,012,416 to Mr. Zhenyong Liu, together with interest of $288,596. In February 2018, the company paid off the remaining balance, together with interest of $20,400. As of December 31, 2023, and 2022, approximately $42,357 and $43,075 of interest were outstanding to Mr. Zhenyong Liu, which was recorded in other payables and accrued liabilities as part of the current liabilities in the consolidated balance sheet. On March 1, 2015, the Company entered an agreement with Mr. Zhenyong Liu which allows Dongfang Paper to borrow from the CEO an amount up to $17,201,342 (RMB120,000,000) for working capital purposes. The advances or funding under the agreement are due three years from the date each amount is funded. The loan is unsecured and carries an annual interest rate set on the basis of the primary lending rate of the People’s Bank of China at the time of the borrowing. On July 13, 2015, an unsecured amount of $4,324,636 was drawn from the facility. On October 14, 2016 an unsecured amount of $2,883,091 was drawn from the facility. In February 2018, the company repaid $1,507,432 to Mr. Zhenyong Liu. The loan would be originally due on July 12, 2018. Mr. Zhenyong Liu agreed to extend the loan for additional 3 years and the remaining balance will be due on July 12, 2021. On November 23, 2018, the company repaid $3,768,579 to Mr. Zhenyong Liu, together with interest of $158,651. In December 2019, the company paid off the remaining balance, together with interest of 94,636. As of December 2023, and 2022, the outstanding interest was $194,047 and $197,338, respectively, which was recorded in other payables and accrued liabilities as part of the current liabilities in the consolidated balance sheet. As of December 31, 2023, and 2022, total amount of loans due to Mr. Zhenyong Liu were $ nil nil On December 8, 2021, the Company entered into an agreement with Mr. Zhenyong Liu, which allows Mr. Zhenyong Liu to borrow from the Company an amount of $6,507,431 (RMB44,089,085). The loan is unsecured and carries a fixed interest rate of 3% per annum. The loan was repaid by Mr. Zhenyong Liu in February 2022. In October 2022 and November 2022, the Company entered into two agreements with Mr. Zhenyong Liu, which allowed Mr. Zhenyong Liu to borrow from the Company an amount of $7,059,455 (RMB50,000,000) in total. The loans were unsecured and carried a fixed interest rate of 4.35% per annum. $4,235,673 (RMB30,000,000) was repaid by Mr. Zhengyong Liu in August 2023 and the remaining balance was repaid in December 2023. Interest income of the loan for the year ended December 31, 2023 was $290,275. As of December 31, 2023, and 2022, amount due to shareholder are $727,433, which represent funds from shareholders to pay for various expenses incurred in the U.S. The amount is due on demand with interest free. |
Other Payables and Accrued Liab
Other Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Other payables and accrued liabilities | (10) Other payables and accrued liabilities Other payables and accrued liabilities consist of the following December 31, December 31, 2023 2022 Accrued electricity $ 3,054 $ 3,036 Accrued rental - 56,646 Value-added tax payable 696 69,053 Accrued interest to a related party 598,319 608,465 Payable for purchase of property, plant and equipment 11,175,858 3,294,940 Accrued commission to salesmen 47,040 19,524 Accrued bank loan interest 1,070,708 1,595,354 Others 16,842 18,540 Totals $ 12,912,517 $ 5,665,558 |
Derivative Liabilities
Derivative Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Liabilities [Abstract] | |
Derivative Liabilities | (11) Derivative Liabilities The Company analyzed the warrant for derivative accounting consideration under ASC 815, “ Derivatives and Hedging, and hedging, ASC 815 requires we assess the fair market value of derivative liability at the end of each reporting period and recognize any change in the fair market value as other income or expense item. The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of December 31, 2023. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each warrant is estimated using the Black-Scholes valuation model. The following weighted-average assumptions were used in the December 31, 2023: Year ended December 31, 2023 Expected term 0.93 - 2.75 Expected average volatility 74% - 102% Expected dividend yield - Risk-free interest rate 0.19% - 4.01% The following table summarizes the changes in the derivative liabilities during the year ended December 31, 2023: Fair Value Measurements Using Significant Observable Inputs (Level 3) Balance at December 31, 2022 $ 646,283 Change in fair value of derivative liability (646,229 ) Balance at December 31, 2023 $ 54 The following table summarizes the loss on derivative liability included in the income statement for the year ended December 31, 2023 and 2022, respectively. Year Ended 2023 2022 Day one loss due to derivative liabilities as warrant $ - $ - (Gain) Loss on change in fair value of derivative liability (646,229 ) (1,417,251 ) (646,229 ) (1,417,251 ) |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2023 | |
Common Stock [Abstract] | |
Common Stock | (12) Common Stock Issuance of common stock to investors On January 20, 2021, the Company offered and sold to certain institutional investors an aggregate of 2,618,182 shares of common stock and 2,618,182 warrants to purchase up to 2,618,182 shares of common stock in a best-efforts public offering for gross proceeds of approximately $14.4 million. The purchase price for each share of common stock and the corresponding warrant was $5.5. The exercise price of the warrant was $5.5 per share. On March 1, 2021, the Company offered and sold to the public investors an aggregate of 2,927,786 shares of common stock and 1,463,893 warrants to purchase up to 1,463,893 shares of common stock in a firm commitment underwritten public offering for gross proceeds of approximately $21.9 million. The purchase price for each share of common stock and accompanying warrant was $7.5. The exercise price of the warrant was $7.5 per share. Reverse stock split On June 9, 2022, the Board of Directors of the Company approved the Reverse Stock Split, at a ratio of 1-for-10, pursuant to Section 78.207 of the Nevada Revised Statutes (“NRS”). The Reverse Stock Split was affected by the Company filing of a Certificate of Change Pursuant to NRS 78.209 with the Secretary of State of the State of Nevada on July 7, 2022. The par value per share of our stock remains unchanged at $0.001 per share after the Reverse Stock Split. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the Reverse Stock Split. Issuance of common stock pursuant to the 2021 Incentive Stock Plan On August 15, 2022, the Company granted an aggregate of 150,000 shares of common stock under its compensatory incentive plans to fifteen employees, as awards under the 2021 Incentive Stock Plan. Please see Note (16), Stock Incentive Plans for more details. Total fair value of the stock was calculated at $156,000 as of the date of grant. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Warrants [Abstract] | |
Warrants | (13) Warrants On April 29, 2020, the Company and certain institutional investors entered into a securities purchase agreement, as amended on May 4, 2020 (the “2020 Purchase Agreement”), pursuant to which the Company agreed to sell to such investors an aggregate of 440,000 shares of common stock and warrants to purchase up to 440,000 shares of common stock in a concurrent private placement (the “May 2020 Warrants”). The exercise price of the May 2020 Warrant is $7.425 per share. These warrants become exercisable on July 23, 2020 and have a term of exercise equal to five years and six months from the date of issuance till July 23, 2025. 88,000 May 2020 Warrants were exercised in February 2021 at the exercise price of $7.425 per share and 352,000 May 2020 Warrants were outstanding as of December 31, 2023. On January 20, 2021, the Company offered and sold to certain institutional investors an aggregate of 2,618,182 shares of common stock and 2,618,182 warrants to purchase up to 2,618,182 shares of common stock (the “January 2021 Warrants”). The January 2021 Warrants became exercisable on January 20, 2021 at an exercise price of $5.5 and will expire on January 20, 2026. 1,410,690 January 2021 Warrants were exercised in January and February of 2021 at the exercise price of $5.5 per share. 1,207,492 January 2021 Warrants were outstanding as of December 31, 2023. On March 1, 2021, the Company offered and sold to the public investors an aggregate of 2,927,786 shares of common stock and 1,463,893 warrants to purchase up to 1,463,893 shares of common stock (the “March 2021 Warrants”). The March 2021 Warrants became exercisable on March 1, 2021 at an exercise price of $7.5 and will expire on March 1, 2026. 6,750 March 2021 Warrants were exercised in January and March 2021 at the exercise price of $7.5 per share and 1,457,143 March 2021 Warrants were outstanding as of December 31, 2023. The Company classified warrant as liabilities and accounted for the issuance of the warrants as a derivative. A summary of stock warrant activities is as below: Year Ended December 31, 2023 Weight Number price Outstanding and exercisable at beginning of the period 3,016,635 $ 6.6907 Issued during the period - Exercised during the period - Cancelled or expired during the period - Outstanding and exercisable at end of the period 3,016,635 $ 6.6907 The following table summarizes information relating to outstanding and exercisable warrants as of December 31, 2023. Warrants Outstanding Warrants Exercisable Weighted Average Weighted Weighted Remaining Average Average Number of Contractual life Exercise Number of Exercise Shares (in years) Price Shares Price 3,016,635 2.09 $ 6.6907 3,016,635 $ 6.6907 Aggregate intrinsic value is the sum of the amounts by which the quoted market price of the Company’s stock exceeded the exercise price of the warrants at December 31, 2023 for those warrants for which the quoted market price was in excess of the exercise price (“in-the-money” warrants). The intrinsic value of the warrants as of December 31, 2023 and 2022 are $ nil |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (14) Earnings Per Share For the years ended December 31, 2023, and 2022, basic and diluted net income per share are calculated as follows: Year Ended 2023 2022 Basic loss per share Net loss for the year - numerator $ (9,946,035 ) $ (16,571,308 ) Weighted average common stock outstanding - denominator 10,065,920 9,972,788 Net loss per share $ (0.99 ) $ (1.66 ) Diluted loss per share Net loss for the year - numerator $ (9,946,035 ) $ (16,571,308 ) Weighted average common stock outstanding - denominator 10,065,920 9,972,788 Effect of dilution - - Weighted average common stock outstanding - denominator 10,065,920 9,972,788 Diluted loss per share $ (0.99 ) $ (1.66 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | (15) Income Taxes United States The Company and Shengde Holdings are incorporated in the State of Nevada and are subject to the U.S. federal tax and state statutory tax rates up to 34% and 0%, respectively. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “2017 TCJA”), which significantly changed U.S. tax law. The 2017TCJA lowered the Company’s U.S. statutory federal income tax rate from the highest rate of 35% to 21% effective January 1, 2018, while also imposing a deemed repatriation tax on deferred foreign income which requires companies to pay a one-time transition tax on previously unremitted earnings of non-U.S. subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The SEC staff issued Staff Accounting Bulletin (SAB) 118, which provides guidance on accounting for enactment effects of the 2017TCJA. SAB 118 provides a measurement period of up to one year from the 2017TCJA’s enactment date for companies to complete their accounting under ASC740. In accordance with SAB 118, to the extent that a company’s accounting for certain income tax effects of the 2017TCJA is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate to be included in its financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the 2017TCJA. Transition tax: The transition tax is a tax on previously untaxed accumulated and current earnings and profits (E&P) of certain of the Company’s non-U.S. subsidiaries. To determine the amount of the transition tax, the Company must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. The Company was able to make a reasonable estimate of the transition tax and recorded a provisional obligation and additional income tax expense of approximately $80,000 in the fourth quarter of 2017. However, the Company is continuing to gather additional information and will consider additional technical guidance to more precisely compute and account for the amount of the transition tax. This amount may change when the Company finalizes the calculation of post-1985 foreign E&P previously deferred from U.S. federal taxation and finalizes the amounts held in cash or other specified assets. The 2017TCJA’s transition tax is payable over eight years beginning in 2018. PRC Dongfang Paper and Baoding Shengde are PRC operating companies and are subject to PRC Enterprise Income Tax. Pursuant to the PRC New Enterprise Income Tax Law, Enterprise Income Tax is generally imposed at a statutory rate of 25%. The provisions for income taxes for the years ended December 31, 2023, and 2022 were as follows: Year Ended December 31, 2023 2022 Provision for Income Taxes Current Tax Provision U.S. $ - $ 15,062 Current Tax Provision PRC 346,954 1,435,173 Deferred Tax Provision PRC - 10,261,104 Total Provision for (Deferred tax benefit)/ Income Taxes $ 346,954 $ 11,711,339 In addition to the reversible future PRC income tax benefits stemming from the timing differences of items such as recognition of asset disposal gain or loss and asset depreciation, the Company was incorporated in the United States and incurred net operating losses of approximately $62,499 and $530,581 for U.S. income tax purposes for the years ended December 31, 2023 and 2022, respectively. The net operating loss carried forward may be available to reduce future years’ taxable income. These carry forwards would expire, if not utilized, during the period of 2030 through 2035. As of December 31, 2023, management believed that the realization of all the U.S. income tax benefits from these losses, which generally would generate a deferred tax asset if it can be expected to be utilized in the future, appears not more than likely due to the Company’s limited operating history and continuing losses for United States income tax purposes. Accordingly, As of December 31, 2023 and 2022, the Company provided a 100% valuation allowance on the U.S. deferred tax asset benefit to reduce the total deferred tax asset to the amount realizable for the PRC income tax purposes. Management reviews this valuation allowance periodically and will make adjustments as warranted. A summary of the otherwise deductible (or taxable) deferred tax items is as follows: December 31, December 31, 2023 2022 Deferred tax assets (liabilities) Depreciation and amortization of property, plant and equipment $ 16,922,756 $ 15,474,485 Impairment of property, plant and equipment 585,380 796,559 Miscellaneous 135,714 615,436 Net operating loss carryover of PRC company 274,525 213,620 (Gain)/Loss on asset disposal (64,065) - Total deferred tax assets 17,854,310 17,100,100 Less: Valuation allowance (17,854,310 ) (17,100,100 ) Total deferred tax assets, net $ - - The following table reconciles the statutory rates to the Company’s effective tax rate as of: Year Ended 2023 2022 PRC Statutory rate 25.0 % 25.0 % Effect of different tax jurisdiction (20.7 ) (17.0 )% Change in valuation allowance (7.9 )% (249.0 )% Effective income tax rate (3.6 )% (241.0 )% During the years ended December 31, 2023, and 2022, the effective income tax rate was estimated by the Company to be -3.6% and -241.0%, respectively. As of December 31, 2023, except for the one-time transition tax under the 2017 TCJA which imposes a U.S. tax liability on all unrepatriated foreign E&Ps, the Company does not believe that its future dividend policy and the available U.S. tax deductions and net operating losses will cause the Company to recognize any other substantial current U.S. federal or state corporate income tax liability in the near future. Nor does it believe that the amount of the repatriation of the VIE’s earnings and profits for purposes of paying dividends will change the Company’s position that its PRC subsidiary Baoding Shengde and the VIE, Dongfang Paper are considered or are expected to be indefinitely reinvested offshore to support our future capacity expansion. If these earnings are repatriated to the U.S. resulting in U.S. taxable income in the future, or if it is determined that such earnings are to be remitted in the foreseeable future, additional tax provisions would be required. The Company has adopted ASC Topic 740-10-05, Income Taxes. To date, the adoption of this interpretation has not impacted the Company’s financial position, results of operations, or cash flows. The Company performed self-assessment and the Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by taxing authorities. Audit periods remain open for review until the statute of limitations has passed, which in the PRC is usually 5 years. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of December 31, 2023 and 2022, management considered that the Company had no uncertain tax positions affecting its consolidated financial position and results of operations or cash flows, and will continue to evaluate for any uncertain position in future. There are no estimated interest costs and penalties provided in the Company’s consolidated financial statements for the year ended December 31, 2023 and 2022, respectively. The Company’s tax positions related to open tax years are subject to examination by the relevant tax authorities and the major one is the China Tax Authority. |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2023 | |
Stock Incentive Plans [Abstract] | |
Stock Incentive Plans | (16) Stock Incentive Plans 2021 Incentive Stock Plan On November 12, 2021, the Company’s Annual General Meeting adopted and approved the 2021 Omnibus Equity Incentive Plan of IT Tech Packaging, Inc.(the”2021 Plan”). Under the 2021 ISP, the Company has reserved a total of 150,000 shares of common stock for issuance as or under awards to be made to the directors, officers, employees and/or consultants of the Company and its subsidiaries. On August 15, 2022, the Company granted an aggregate of 150,000 shares of common stock under its compensatory incentive plans to fifteen employees. Total fair value of the stock was calculated at $156,000 as of the date of grant. 2023 Incentive Stock Plan On October 31, 2023, the Company’s Annual General Meeting adopted and approved the 2023 Omnibus Equity Incentive Plan of IT Tech Packaging, Inc.(the”2023 Plan”). Under the 2023 ISP, the Company has reserved a total of 1,500,000 shares of common stock for issuance as or under awards to be made to the directors, officers, employees and/or consultants of the Company and its subsidiaries. All shares of common stock under the 2023 ISP, including shares originally authorized by equity holders and shares remaining for future issuance as of December 31, 2023, have been reserved. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | (17) Commitments and Contingencies Xushui Land Lease The Company leases 32.95 acres of land from a local government in Xushui District, Baoding City, Hebei, China through a real estate lease with a 30-year term, which expires on December 31, 2031. The lease requires an annual rental payment of approximately $16,943 (RMB120,000). This lease is renewable at the end of the 30-year term. December 31, Amount 2024 16,943 2025 16,943 2026 16,943 2027 16,943 2028 16,943 Thereafter 50,828 Total operating lease payments $ 135,543 Sale of Headquarters Compound Real Properties On August 7, 2013, the Company’s Audit Committee and the Board of Directors approved the sale of the land use right of the Headquarters Compound (the “LUR”), the office building and essentially all industrial-use buildings in the Headquarters Compound (the “Industrial Buildings”), and three employee dormitory buildings located within the Headquarters Compound (the “Dormitories”) to Hebei Fangsheng for cash prices of approximately $2.77 million, $1.15 million, and $4.31 million respectively. Sales of the LUR and the Industrial Buildings were completed in year 2013. In connection with the sale of the Industrial Buildings, Hebei Fangsheng agreed to lease the Industrial Buildings back to the Company for its original use with an annual rental payment of approximately $141,189 (RMB1,000,000). The lease was recorded in lease assets and liabilities in the consolidated balance sheet as of December 31, 2023. December 31, Amount 2024 141,189 2025 141,189 2026 141,189 2027 141,189 2028 141,189 Thereafter - Total operating lease payments $ 705,945 Less: Interest (121,595 ) Present value of lease liabilities 584,350 Less: current portion, record in current liabilities (100,484 ) Present value of lease liabilities 483,866 Capital commitment As of December 31, 2023, the Company has entered into several contracts for the purchase of paper machine of a new tissue paper production line PM10 and the improvement of Industrial Buildings. Total outstanding commitments under these contracts were $3,499,936 and $4,329,279 as of December 31, 2023 and 2022, respectively. The Company expected to pay off all the balances within 1-3 years. Guarantees and Indemnities The Company agreed with Baoding Huanrun Trading Co., a major supplier of raw materials, to guarantee certain obligations of this third party, and as of December 31, 2023, and 2022, the Company guaranteed its long-term loan from financial institutions amounting to $4,376,862 (RMB31,000,000) and $4,451,081 (RMB31,000,000), respectively, that matured at various times in 2028. If Huanrun Trading Co., were to become insolvent, the Company could be materially adversely affected. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | (18) Segment Reporting Since March 10, 2010, Baoding Shengde started its operations and thereafter the Company manages its operations through three business operating segments: Dongfang Paper and Tengsheng Paper, which produces offset printing paper, corrugating medium paper and tissue paper, and Baoding Shengde, which produces face masks and digital photo paper. They are managed separately because each business requires different technology and marketing strategies. The Company evaluates performance of its operating segments based on net income. Administrative functions such as finance, treasury, and information systems are centralized. However, where applicable, portions of the administrative function expenses are allocated among the operating segments based on gross revenue generated. The operating segments do share facilities in Xushui County, Baoding City, Hebei Province, China. All sales were sold to customers located in the PRC. Summarized financial information for the three reportable segments is as follows: Year Ended December 31, 2023 Dongfang Tengsheng Baoding Not Attributable Elimination of Enterprise-wide, Paper Paper Shengde to Segments Inter-segment consolidated Revenues $ 85,106,864 1,334,022 106,064 - - 86,546,950 Gross profit 4,006,381 (2,995,369 ) (11,127 ) - - 999,885 Depreciation and amortization 4,168,755 8,470,810 1,586,425 - - 14,225,990 Loss on impairment of assets 905,226 219,744 375,328 - - 1,500,298 Interest income 300,928 2,376 9,790 2,002 - 315,096 Interest expense 503,740 181,447 291,675 7,656 - 984,518 Income tax expense(benefit) 346,954 - - - - 346,954 Net income (loss) (109,770 ) (9,004,792 ) (726,065 ) (105,408 ) - (9,946,035 ) Year Ended December 31, 2022 Dongfang Tengsheng Baoding Not Attributable Elimination of Enterprise-wide, Paper Paper Shengde to Segments Inter-segment consolidated Revenues $ 98,725,408 1,369,206 257,820 - - 100,352,434 Gross profit 7,629,761 (2,942,893 ) 67,328 - - 4,754,196 Depreciation and amortization 4,782,157 8,349,374 1,656,505 - - 14,788,036 Interest income 12,820 1,209 8,684 1,551 - 24,264 Interest expense 653,525 54,180 320,246 - - 1,027,951 Income tax expense(benefit) 3,054,208 7,062,139 1,579,930 15,062 - 11,711,339 Net income (loss) 780,465 (17,162,887 ) (1,100,286 ) 880,406 30,994 (16,571,308 ) As of December 31, 2023 Dongfang Tengsheng Baoding Not Attributable Elimination of Enterprise-wide, Total assets $ 57,139,592 127,734,031 8,184,902 1,685,124 - 194,743,649 As of December 31, 2022 Dongfang Tengsheng Baoding Not Attributable Elimination of Enterprise-wide, Total assets $ 63,365,986 117,645,828 17,945,969 5,489,450 - 204,447,233 |
Concentration and Major Custome
Concentration and Major Customers and Suppliers | 12 Months Ended |
Dec. 31, 2023 | |
Concentration and Major Customers and Suppliers [Abstarct] | |
Concentration and Major Customers and Suppliers | (19) Concentration and Major Customers and Suppliers For the years ended December 31, 2023, and 2022, the Company had no single customer contributed over 10% of total sales. For the year ended December 31, 2023, the Company had two major suppliers that accounted for 72% and 17% of total purchases by the Company. For the year ended December 31, 2022, the Company had two major suppliers that accounted for 76% and 15% of total purchases by the Company. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2023 | |
Concentration of Credit Risk [Abstract] | |
Concentration of Credit Risk | (20) Concentration of Credit Risk Financial instruments for which the Company is potentially subject to concentration of credit risk consist principally of cash. The Company places its cash in reputable financial institutions in the PRC and the United States. Although it is generally understood that the PRC central government stands behind all of the banks in China in the event of bank failure, there is no deposit insurance system in China that is similar to the protection provided by the Federal Deposit Insurance Corporation (“FDIC”) of the United States as of December 31, 2023 and 2022. On May 1, 2015, the new “Deposit Insurance Regulations” was effective in the PRC that the maximum protection would be up to RMB500,000 (US$70,595) per depositor per insured financial intuition, including both principal and interest. For the cash placed in financial institutions in the United States, the Company’s U.S. bank accounts are all fully covered by the FDIC insurance as of December 31, 2023, and 2022, while for the cash placed in financial institutions in the PRC, the balances exceeding the maximum coverage of RMB500,000 amounted to RMB24,135,060 (US$3,407,607) as of December 31, 2023. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | (21) Risks and Uncertainties IT Tech Packaging is subject to substantial risks from, among other things, intense competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, foreign currency exchange rates, and operating in the PRC under its various laws and restrictions. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Event [Abstract] | |
Subsequent Event | (22) Subsequent Event The board removed Jie Ping from the position of Legal Representative of Tengsheng Paper On January 1, 2024. |
Summarized Quarterly Financial
Summarized Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Summarized Quarterly Financial Data (Unaudited) [Abstract] | |
Summarized Quarterly Financial Data (Unaudited) | (23) Summarized Quarterly Financial Data (Unaudited) Quarter 2023 First Second Third Fourth Revenues $ 19,790,877 $ 30,019,914 $ 15,771,560 $ 20,964,599 Gross (loss) profit (276,999 ) 1,179,858 (153,223 ) 250,249 Loss from operations (2,772,361 ) (518,683 ) (2,484,513 ) (3,800,331 ) Net loss (2,733,165 ) (1,253,493 ) (1,975,368 ) (3,984,009 ) Net income per share Basic $ -0.27 $ -0.125 $ -0.20 $ -0.40 Diluted $ -0.27 $ -0.125 $ -0.20 $ -0.40 2022 First Second Third Fourth Revenues $ 15,481,618 $ 31,788,884 $ 31,709,214 $ 21,372,718 Gross profit 310,445 634,037 2,783,588 1,026,126 Loss from operations (2,990,436 ) (1,235,765 ) (586,953 ) (1,895,373 ) Net loss (2,488,214 ) (287,913 ) (1,887,318 ) (11,907,863 ) Net income per share Basic $ -0.03 $ -0.003 $ -0.19 $ -1.19 Diluted $ -0.03 $ -0.003 $ -0.19 $ -1.19 |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information of the Parent Company [Abstract] | |
Condensed Financial Information of the Parent Company | (24) Condensed Financial Information of the Parent Company The condensed financial statements of IT Tech Packaging Inc. (“ITP”, the “parent company”) have been prepared in accordance with accounting principles generally accepted in the United States of America. Under the PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer certain of their net assets to the parent company in the form of dividend payments, loans or advances. The amounts restricted include paid-in capital, capital surplus and statutory reserves, as determined pursuant to PRC generally accepted accounting principles, totaling $86,641,643 and $86,141,643 as of December 31, 2023, and 2022. The following represents condensed unconsolidated financial information of the parent company only: December 31, December 31, 2023 2022 ASSETS Current Assets Cash and cash equivalents $ 678,347 $ 1,930,241 Prepayments and other current assets - - Total current assets 678,347 1,930,241 Investment in subsidiaries 172,382,428 184,806,532 Total Assets $ 173,060,775 $ 186,736,773 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Inter-company payable $ 4,026,904 $ 4,070,160 Due to related parties 727,433 727,433 Accrued payroll and employee benefit - - Accrued liabilities - - Income tax payable - - Total current liabilities 4,754,337 4,797,593 Derivative liability 54 646,283 Total liabilities $ 4,754,391 $ 5,443,876 Total stockholders’ equity 1 68,306,384 181,292,897 Total Liabilities and Stockholders’ Equity $ 173,060,775 $ 186,736,773 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2023 2022 Revenue - - Selling, general and administrative expenses $ 708,638 $ 515,294 Loss from Operations (708,638 ) (515,294 ) Equity in earnings of unconsolidated subsidiaries (9,883,626 ) (17,489,197 ) Loss on derivative liability 646,229 1,417,251 Other Income (Expense) - - Income before Income Taxes (9,946,035 ) (16,587,240 ) Provision for Income Taxes - (15,062 ) Net Income $ (9,946,035 ) $ (16,602,302 ) Other comprehensive income /(loss) (3,040,994 ) (18,010,708 ) Total Comprehensive Income (loss) $ (12,987,029 ) $ (34,613,010 ) Year Ended December 31, 2023 2022 Net Cash Used in Operating Activities $ (708,641 ) $ (374,357 ) Net Cash Used in Investing Activities (500,000 ) (6,502,000 ) Net Cash Provided by Financing Activities (43,253 ) (329,399 ) Net Increase (Decrease) in Cash and Cash Equivalents (1,251,894 ) (7,205,755 ) Cash and Cash Equivalents - Beginning of Year 1,930,241 9,135,996 Cash and Cash Equivalents - End of Year $ 678,347 $ 1,930,241 The condensed financial information has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company has used equity method to account for its investments in the subsidiaries. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (9,946,035) | $ (16,571,308) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries and variable interest entity. All significant inter-company balances, transactions and cash flows are eliminated on consolidation. |
Foreign Currency Translation | Foreign Currency Translation The Company accounts for foreign currency translation pursuant to ASC Topic 830, Foreign Currency Matters Under ASC Topic 830-30, all assets and liabilities are translated into United States dollars using the current exchange rate at the end of each fiscal period. The current exchange rates used by the Company as of December 31, 2023, and 2022 to translate the Chinese RMB to the U.S. Dollars are 7.0827:1, and 6.9646:1, respectively. Revenues and expenses are translated using the average exchange rates prevailing throughout the respective years at 7.0558:1 and 6.75731 for the years ended December 31, 2023, and 2022, respectively. Translation adjustments are included in other comprehensive income (loss). |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of December 31, 2023, and 2022, and revenues and expenses for the years ended December 31, 2023, and 2022. The most significant estimates relate to allowance for uncollectible accounts receivable, inventory valuation, useful lives and impairment for property, plant and equipment, valuation allowance for deferred tax assets and contingencies. Actual results could differ from those estimates made by management. |
Accounts Receivable | Accounts Receivable Trade accounts receivable are recorded on shipment of products to customers. The trade receivables are all without customer collateral and interest is not accrued on past due accounts. Periodically, management reviews the adequacy of its provision for doubtful accounts based on historical bad debt expense results and current economic conditions using factors based on the aging of its accounts receivable. Additionally, the Company may identify additional allowance requirements based on indications that a specific customer may be experiencing financial difficulties. Actual bad debt results could differ materially from these estimates. As of December 31, 2023, and 2022, the balance of allowance for doubtful accounts was $881,878 and $69,053, respectively; and the movement of the provision of the doubtful accounts is as below. While management uses the best information available upon which to base estimates, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used for the purposes of analysis. December 31, December 31, Allowance of doubtful accounts 2023 2022 Opening balance $ 881,878 $ 69,053 Provision (Reversal) for the year (858,689 ) 843,779 Exchange difference (11,444 ) (30,954 ) Closing balance $ 11,745 $ 881,878 |
Inventories | Inventories Inventories consist principally of raw materials and finished goods, and are stated at the lower of cost (average cost method) or market. Cost includes labor, raw materials, and allocated overhead. Provision in inventories were $ nil |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation and any impairment losses. Major renewals, betterments, and improvements are capitalized to the asset accounts while replacements, maintenance, and repairs, which do not improve or extend the lives of the respective assets, are expensed to operations. At the time property, plant, and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation or amortization accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to operations. Construction-in-progress is stated at cost and capitalized as expenses are incurred or as payments are made pursuant to relevant construction contracts. Contract retention is recorded as accrued liability. Construction in progress is not depreciated until project completion and the constructed property being placed in service, at which time the capitalized balance will be transferred to appropriate account of property, plant and equipment. The Company depreciates property, plant, and equipment using the straight-line method as follows: Land use right Over the lease term Building and improvements 30 years Machinery and equipment 5-15 years Vehicles 15 years |
Valuation of long-lived asset | Valuation of long-lived asset The Company reviews the carrying value of long-lived assets to be held and used when events and circumstances warrants such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset and intangible assets. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets and intangible assets to be disposed are determined in a similar manner, except that fair market values are reduced for the cost to dispose. |
Statutory Reserves | Statutory Reserves According to the laws and regulations in the PRC, the Company is required to provide for certain statutory funds, namely, a reserve fund by an appropriation from net profit after taxation but before dividend distribution based on the local statutory financial statements of the PRC subsidiaries and variable interest entity prepared in accordance with the PRC accounting principles and relevant financial regulations. Each of the Company’s wholly owned subsidiary and variable interest entity in the PRC are required to allocate at least 10% of its net profit to the reserve fund until the balance of such fund has reached 50% of its registered capital. Appropriations of additional reserve fund are determined at the discretion of its directors. The reserve fund can only be used, upon approval by the relevant authority, to offset accumulated losses or increase capital. For the years ended December 31, 2023, and 2022, IT Tech Packaging made transfers of $ nil |
Employee Benefit Plan | Employee Benefit Plan Full time employees of the PRC entities participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance and other welfare benefits are provided to employees. The total provision for such employee benefits was $ nil |
Revenue Recognition | Revenue Recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a company expects to be entitled from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise, performance obligations are combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. The Company has addressed whether various goods and services promised to the customer represent distinct performance obligations. The Company applied the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct performance obligations. The Company’s revenue is primary derived from sales of paper products. The Company recognizes revenue when goods are delivered, when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist, and collectability is reasonably assured. Goods are considered delivered when customer’s truck picks up goods at the Company’s finished goods inventory warehouse. |
Shipping Cost | Shipping Cost Substantially all customers use their own trucks or hire commercial trucking companies to pick up goods from the Company. The Company usually incurs no shipping cost for delivery of goods to customers. For those rare situations where products are not shipped utilizing customer specified shipping services, the Company charges customers a shipping fee which is included in net revenues and was not material. Freight-in and handling costs incurred by the Company with respect to purchased goods are recorded as a component of inventory cost and charged to cost of sales when the inventory items are sold. |
Advertising | Advertising The Company expenses all advertising and promotion costs as incurred. The Company incurred $ nil |
Research and development costs | Research and development costs Research and development costs are expensed as incurred and included in selling, general and administrative expenses. Research and development expenses incurred $90,766 and $145,538 for the years ended December 31, 2023, and 2022, respectively. |
Borrowing costs | Borrowing costs Borrowing costs attributable directly to the acquisition, construction or production of qualifying assets which require a substantial period of time to be ready for their intended use or sale, are capitalized as part of the cost of those assets. Income earned on temporary investments of specific borrowings pending their expenditure on those assets is deducted from borrowing costs capitalized. All other borrowing costs are recognized in interest expenses in the period in which they are incurred. |
Government subsidies | Government subsidies A government subsidy is not recognized until there is reasonable assurance that: (a) the enterprise will comply with the conditions attached to the grant; and(b)the grant will be received. When the Company receives government subsidies but the conditions attached to the grants have not been fulfilled, such government subsidies are deferred and recorded under other payables and accrued expenses, and other long-term liability. The classification of short-term or long-term liabilities is depended on the management’s expectation of when the conditions attached to the grant can be fulfilled. For the years ended December 31, 2023, and 2022, the Company received government subsidies of $ nil |
Income Taxes | Income Taxes The Company accounts for income taxes pursuant to ASC Topic 740, Income Taxes. Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. ASC Topic 740 also requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Realization of deferred tax assets, including those related to the U.S. net operating loss carry-forwards, are dependent upon future earnings, if any, of which the timing and amount are uncertain. The Company adopted ASC Topic 740-10-05, Income Tax The Company’s policy on classification of all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expense. |
Value Added Tax | Value Added Tax Both the PRC subsidiaries and variable interest entity of the Company are subject to value added tax (“VAT”) imposed by the PRC government on its purchase and sales of goods. The output VAT is charged to customers who purchase goods from the Company and the input VAT is paid when the Company purchases goods from its vendors. VAT rate is 17% (before May 1, 2018), 16% (after May 1, 2018) and 13% (after April 1, 2019) in general, depending on the types of products purchased and sold. The input VAT can be offset against the output VAT. Debit balance of VAT payable represents a credit against future collection of output VAT instead of a receivable due from government. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company presents comprehensive income (loss) in accordance with ASC Topic 220, Comprehensive Income |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing the net income attributable to the common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There were no potentially dilutive securities that were in-the-money that were outstanding during the years ended December 31, 2023. |
Share-Based Compensation | Share-Based Compensation The Company uses the fair value recognition provision of ASC Topic 718, Compensation-Stock Compensation, The Company also applies the provisions of ASC Topic 505-50, Equity Based Payments to Non-Employees |
Reverse stock split | Reverse stock split On June 9, 2022, the Board of Directors of the Company approved the Reverse Stock Split, at a ratio of 1-for-10, pursuant to Section 78.207 of the Nevada Revised Statutes (“NRS”). The Reverse Stock Split was effected by the Company filing of a Certificate of Change Pursuant to NRS 78.209 with the Secretary of State of the State of Nevada on July 7, 2022. The par value per share of our stock remains unchanged at $0.001 per share after the Reverse Stock Split. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the Reverse Stock Split. |
Fair Value Measurements | Fair Value Measurements The Company has adopted ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. It does not require any new fair value measurement, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. The Company estimates the fair value of financial instruments using the available market information and valuation methods. Considerable judgment is required in estimating fair value. Accordingly, the estimates of fair value may not be indicative of the amounts that the Company could realize in a current market exchange. As of December 31, 2023, and 2022, the carrying value of the Company’s short term financial instruments, such as cash and bank balances, accounts receivable, accounts and notes payable, short-term bank loans and balance due to related parties, approximate at their fair values because of the short maturity of these instruments; while loans from credit union approximates at their fair value as the interest rates thereon are close to the market rates of interest published by the People’s Bank of China. Derivative liabilities are measured at fair value on a recurring basis. |
Non-Recurring Fair Value Measurements | Non-Recurring Fair Value Measurements The Company reviews long-lived assets for impairment annually or more frequently if events or changes in circumstances indicate the possibility of impairment. For the continuing operations, long-lived assets are measured at fair value on a nonrecurring basis when there is an indicator of impairment, and they are recorded at fair value only when impairment is recognized. For discontinued operations, long-lived assets are measured at the lower of carrying amount or fair value less cost to sell. The fair value of these assets was determined using models with significant unobservable inputs which were classified as Level 3 inputs, primarily the discounted future cash flow. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. |
Organization and Business Bac_2
Organization and Business Background (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Business Background [Abstract] | |
Schedule of Subsidiaries and Variable Interest Entities | As of December 31, 2023, and 2022, details of the Company’s subsidiaries and variable interest entity are as follows: Date of Place of Percentage Incorporation Incorporation or of Name or Establishment Establishment 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 consolidated balance sheets as of December 31, 2023, and 2022 are as follows: December 31, December 31, 2023 2022 ASSETS Current Assets Cash and bank balances $ 2,807,608 $ 3,427,717 Restricted cash 472,983 - Accounts receivable 575,526 - Inventories 3,555,235 2,852,553 Prepayments and other current assets 18,617,351 20,134,386 Due from related parties 289,173 7,418,274 Total current assets 26,317,876 33,832,930 Prepayment on property, plant and equipment - 1,031,502 Operating lease right-of-use assets, net 528,648 672,722 Finance lease right-of-use assets, net - 1,939,970 Property, plant, and equipment, net 158,027,099 143,534,690 Deferred tax asset non-current - - Total Assets $ 184,873,623 $ 181,011,814 LIABILITIES Current Liabilities Short-term bank loans $ - $ 5,598,311 Current portion of long-term loans 2,780,014 4,835,885 Lease liability 100,484 224,497 Accounts payable 4,991 5,025 Advance from customers 136,167 - Accrued payroll and employee benefits 231,568 143,156 Other payables and accrued liabilities 11,843,973 4,887,584 Income taxes payable - 417,906 Total current liabilities 15,097,197 16,112,364 Long-term loans 4,503,932 40,203 Deferred gain on sale-leaseback - 52,314 Lease liability - non-current 483,866 579,997 Total liabilities $ 20,084,995 $ 16,784,878 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Schedule of Allowance of Doubtful Accounts | While management uses the best information available upon which to base estimates, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used for the purposes of analysis. December 31, December 31, Allowance of doubtful accounts 2023 2022 Opening balance $ 881,878 $ 69,053 Provision (Reversal) for the year (858,689 ) 843,779 Exchange difference (11,444 ) (30,954 ) Closing balance $ 11,745 $ 881,878 |
Schedule of Property, Plant, and Equipment Using Straight-Line Method | The Company depreciates property, plant, and equipment using the straight-line method as follows: Land use right Over the lease term Building and improvements 30 years Machinery and equipment 5-15 years Vehicles 15 years |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
Schedule of Inventories | Raw materials inventory includes mainly recycled paper and gas. Finished goods include mainly products of corrugating medium paper and offset printing paper. Inventories consisted of the following as of and December 31, 2023, and 2022: December 31, December 31, 2023 2022 Raw Materials Recycled paper board $ 198,744 $ 1,258,161 Recycled white scrap paper 10,647 10,809 Gas 21,428 42,237 Base paper and other raw materials 142,149 160,229 372,968 1,471,436 Semi-finished Goods 300,207 132,810 Finished Goods 2,885,019 1,268,376 Total inventory, gross 3,558,194 2,872,622 Inventory reserve (2,959 ) - Total inventory, net $ 3,555,235 $ 2,872,622 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and Other Current Assets [Abstract] | |
Schedule of Prepayments and Other Current Assets | Prepayments and other current assets consisted of the following as of December 31, 2023, and 2022: December 31, December 31, 2023 2022 Prepaid land lease $ - $ 172,300 Prepayment for purchase of materials 5,446,823 12,941,951 Value-added tax recoverable 13,409,459 13,640,868 Prepaid gas 116,372 27,462 Others 8,636 424,546 $ 18,981,290 $ 27,207,127 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As of December 31, 2023, and 2022, property, plant and equipment consisted of the following: December 31, December 31, 2023 2022 Property, Plant, and Equipment: Land use rights $ 81,504,608 $ 57,686,220 Building and improvements 67,939,059 68,300,987 Machinery and equipment 158,629,858 158,498,316 Vehicles 348,209 681,617 Construction in progress - 1,239,698 Totals 308,421,734 286,406,838 Less: accumulated depreciation and amortization (144,447,712 ) (134,836,940 ) Property, Plant and Equipment, net $ 163,974,022 $ 151,569,898 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Expense | The components of the Company’s lease expense are as follows: Year Ended 2023 RMB Operating lease cost 141,189 Short-term lease cost - Lease cost 141,189 |
Schedule Operating Leases | Supplemental cash flow information related to its operating lease was as follows for the period ended December 31, 2023: Year Ended 2023 RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating lease 141,189 |
Schedule of Maturities of its Lease Liabilities | Maturities of its lease liabilities for all operating lease are as follows as of December 31, 2023: December 31, Amount 2024 141,189 2025 141,189 2026 141,189 2027 141,189 2028 141,189 Thereafter - Total operating lease payments $ 705,945 Less: Interest (121,595 ) Present value of lease liabilities 584,350 Less: current portion, record in current liabilities (100,484 ) Present value of lease liabilities 483,866 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates | The weighted average remaining lease terms and discount rates for all of its operating leases were as follows as of December 31, 2023: December 31, 2023 Remaining lease term and discount rate: RMB Weighted average remaining lease term (years) 4.6 Weighted average discount rate 7.56 % |
Loans Payable (Tables)
Loans Payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loans Payable [Abstract] | |
Schedule of Short-Term Bank Loans | Short-term bank loans December 31, December 31, 2023 2022 Industrial and Commercial Bank of China (“ICBC”) Loan 1 $ - $ 5,023,978 ICBC Loan 2 - 287,167 ICBC Loan 3 - 143,583 China Construction Bank Loan - 143,583 ICBC Loan 4 423,567 - ICBC Loan 5 2,824 - ICBC Loan 6 70,594 - ICBC Loan 7 350,149 - Total short-term bank loans $ 423,567 $ 5,598,311 |
Schedule of Long Term Loans | As of December 31, 2023, and 2022, long-term loan balance is $11,378,429 and $9,040,002, respectively. December 31, December 31, 2023 2022 Rural Credit Union of Xushui District Loan 1 $ - $ 1,234,816 Rural Credit Union of Xushui District Loan 2 3,528,315 3,589,582 Rural Credit Union of Xushui District Loan 3 2,259,026 2,297,332 Rural Credit Union of Xushui District Loan 4 1,835,458 1,866,582 Rural Credit Union of Xushui District Loan 5 2,541,404 - Rural Credit Union of Xushui District Loan 6 1,214,226 - Yujiangna - 51,690 Total 11,378,429 9,040,002 Less: Current portion of long-term loans (6,874,497 ) (4,835,884 ) Long-term loans $ 4,503,932 $ 4,204,118 |
Schedule of Long-Term Debt Repayments | As of Dec 31, 2023, the Company’s long-term debt repayments for the next coming years were as follows: Amount Fiscal year 2024 6,874,497 2025 3,374,419 2026 & after 1,129,513 Total 11,378,429 |
Other Payables and Accrued Li_2
Other Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Other Payables and Accrued Liabilities | Other payables and accrued liabilities consist of the following December 31, December 31, 2023 2022 Accrued electricity $ 3,054 $ 3,036 Accrued rental - 56,646 Value-added tax payable 696 69,053 Accrued interest to a related party 598,319 608,465 Payable for purchase of property, plant and equipment 11,175,858 3,294,940 Accrued commission to salesmen 47,040 19,524 Accrued bank loan interest 1,070,708 1,595,354 Others 16,842 18,540 Totals $ 12,912,517 $ 5,665,558 |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Liabilities [Abstract] | |
Schedule of Weighted-Average Assumptions | The following weighted-average assumptions were used in the December 31, 2023: Year ended December 31, 2023 Expected term 0.93 - 2.75 Expected average volatility 74% - 102% Expected dividend yield - Risk-free interest rate 0.19% - 4.01% |
Schedule of Loss on Derivative Liability Included in the Income Statement | Fair Value Measurements Using Significant Observable Inputs (Level 3) Balance at December 31, 2022 $ 646,283 Change in fair value of derivative liability (646,229 ) Balance at December 31, 2023 $ 54 |
Schedule of Loss on Derivative Liability Included in the Income Statement | The following table summarizes the loss on derivative liability included in the income statement for the year ended December 31, 2023 and 2022, respectively. Year Ended 2023 2022 Day one loss due to derivative liabilities as warrant $ - $ - (Gain) Loss on change in fair value of derivative liability (646,229 ) (1,417,251 ) (646,229 ) (1,417,251 ) |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Warrants [Abstract] | |
Schedule of Stock Warrant Activities | A summary of stock warrant activities is as below: Year Ended December 31, 2023 Weight Number price Outstanding and exercisable at beginning of the period 3,016,635 $ 6.6907 Issued during the period - Exercised during the period - Cancelled or expired during the period - Outstanding and exercisable at end of the period 3,016,635 $ 6.6907 |
Schedule of Outstanding and Exercisable Warrants | The following table summarizes information relating to outstanding and exercisable warrants as of December 31, 2023. Warrants Outstanding Warrants Exercisable Weighted Average Weighted Weighted Remaining Average Average Number of Contractual life Exercise Number of Exercise Shares (in years) Price Shares Price 3,016,635 2.09 $ 6.6907 3,016,635 $ 6.6907 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Share | For the years ended December 31, 2023, and 2022, basic and diluted net income per share are calculated as follows: Year Ended 2023 2022 Basic loss per share Net loss for the year - numerator $ (9,946,035 ) $ (16,571,308 ) Weighted average common stock outstanding - denominator 10,065,920 9,972,788 Net loss per share $ (0.99 ) $ (1.66 ) Diluted loss per share Net loss for the year - numerator $ (9,946,035 ) $ (16,571,308 ) Weighted average common stock outstanding - denominator 10,065,920 9,972,788 Effect of dilution - - Weighted average common stock outstanding - denominator 10,065,920 9,972,788 Diluted loss per share $ (0.99 ) $ (1.66 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Schedule of Provisions for Income Taxes | The provisions for income taxes for the years ended December 31, 2023, and 2022 were as follows: Year Ended December 31, 2023 2022 Provision for Income Taxes Current Tax Provision U.S. $ - $ 15,062 Current Tax Provision PRC 346,954 1,435,173 Deferred Tax Provision PRC - 10,261,104 Total Provision for (Deferred tax benefit)/ Income Taxes $ 346,954 $ 11,711,339 |
Schedule of Deferred Tax | A summary of the otherwise deductible (or taxable) deferred tax items is as follows: December 31, December 31, 2023 2022 Deferred tax assets (liabilities) Depreciation and amortization of property, plant and equipment $ 16,922,756 $ 15,474,485 Impairment of property, plant and equipment 585,380 796,559 Miscellaneous 135,714 615,436 Net operating loss carryover of PRC company 274,525 213,620 (Gain)/Loss on asset disposal (64,065) - Total deferred tax assets 17,854,310 17,100,100 Less: Valuation allowance (17,854,310 ) (17,100,100 ) Total deferred tax assets, net $ - - |
Schedule of Reconciles the Statutory Rates Effective Tax Rates | The following table reconciles the statutory rates to the Company’s effective tax rate as of: Year Ended 2023 2022 PRC Statutory rate 25.0 % 25.0 % Effect of different tax jurisdiction (20.7 ) (17.0 )% Change in valuation allowance (7.9 )% (249.0 )% Effective income tax rate (3.6 )% (241.0 )% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Schedule of Annual Rental Payment | The Company leases 32.95 acres of land from a local government in Xushui District, Baoding City, Hebei, China through a real estate lease with a 30-year term, which expires on December 31, 2031. The lease requires an annual rental payment of approximately $16,943 (RMB120,000). This lease is renewable at the end of the 30-year term. December 31, Amount 2024 16,943 2025 16,943 2026 16,943 2027 16,943 2028 16,943 Thereafter 50,828 Total operating lease payments $ 135,543 December 31, Amount 2024 141,189 2025 141,189 2026 141,189 2027 141,189 2028 141,189 Thereafter - Total operating lease payments $ 705,945 Less: Interest (121,595 ) Present value of lease liabilities 584,350 Less: current portion, record in current liabilities (100,484 ) Present value of lease liabilities 483,866 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information for Reportable Segments | Summarized financial information for the three reportable segments is as follows: Year Ended December 31, 2023 Dongfang Tengsheng Baoding Not Attributable Elimination of Enterprise-wide, Paper Paper Shengde to Segments Inter-segment consolidated Revenues $ 85,106,864 1,334,022 106,064 - - 86,546,950 Gross profit 4,006,381 (2,995,369 ) (11,127 ) - - 999,885 Depreciation and amortization 4,168,755 8,470,810 1,586,425 - - 14,225,990 Loss on impairment of assets 905,226 219,744 375,328 - - 1,500,298 Interest income 300,928 2,376 9,790 2,002 - 315,096 Interest expense 503,740 181,447 291,675 7,656 - 984,518 Income tax expense(benefit) 346,954 - - - - 346,954 Net income (loss) (109,770 ) (9,004,792 ) (726,065 ) (105,408 ) - (9,946,035 ) Year Ended December 31, 2022 Dongfang Tengsheng Baoding Not Attributable Elimination of Enterprise-wide, Paper Paper Shengde to Segments Inter-segment consolidated Revenues $ 98,725,408 1,369,206 257,820 - - 100,352,434 Gross profit 7,629,761 (2,942,893 ) 67,328 - - 4,754,196 Depreciation and amortization 4,782,157 8,349,374 1,656,505 - - 14,788,036 Interest income 12,820 1,209 8,684 1,551 - 24,264 Interest expense 653,525 54,180 320,246 - - 1,027,951 Income tax expense(benefit) 3,054,208 7,062,139 1,579,930 15,062 - 11,711,339 Net income (loss) 780,465 (17,162,887 ) (1,100,286 ) 880,406 30,994 (16,571,308 ) As of December 31, 2023 Dongfang Tengsheng Baoding Not Attributable Elimination of Enterprise-wide, Total assets $ 57,139,592 127,734,031 8,184,902 1,685,124 - 194,743,649 As of December 31, 2022 Dongfang Tengsheng Baoding Not Attributable Elimination of Enterprise-wide, Total assets $ 63,365,986 117,645,828 17,945,969 5,489,450 - 204,447,233 |
Summarized Quarterly Financia_2
Summarized Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summarized Quarterly Financial Data (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Data | Quarter 2023 First Second Third Fourth Revenues $ 19,790,877 $ 30,019,914 $ 15,771,560 $ 20,964,599 Gross (loss) profit (276,999 ) 1,179,858 (153,223 ) 250,249 Loss from operations (2,772,361 ) (518,683 ) (2,484,513 ) (3,800,331 ) Net loss (2,733,165 ) (1,253,493 ) (1,975,368 ) (3,984,009 ) Net income per share Basic $ -0.27 $ -0.125 $ -0.20 $ -0.40 Diluted $ -0.27 $ -0.125 $ -0.20 $ -0.40 2022 First Second Third Fourth Revenues $ 15,481,618 $ 31,788,884 $ 31,709,214 $ 21,372,718 Gross profit 310,445 634,037 2,783,588 1,026,126 Loss from operations (2,990,436 ) (1,235,765 ) (586,953 ) (1,895,373 ) Net loss (2,488,214 ) (287,913 ) (1,887,318 ) (11,907,863 ) Net income per share Basic $ -0.03 $ -0.003 $ -0.19 $ -1.19 Diluted $ -0.03 $ -0.003 $ -0.19 $ -1.19 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information of the Parent Company [Abstract] | |
Schedule of Condensed Unconsolidated Financial Information | The following represents condensed unconsolidated financial information of the parent company only: December 31, December 31, 2023 2022 ASSETS Current Assets Cash and cash equivalents $ 678,347 $ 1,930,241 Prepayments and other current assets - - Total current assets 678,347 1,930,241 Investment in subsidiaries 172,382,428 184,806,532 Total Assets $ 173,060,775 $ 186,736,773 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Inter-company payable $ 4,026,904 $ 4,070,160 Due to related parties 727,433 727,433 Accrued payroll and employee benefit - - Accrued liabilities - - Income tax payable - - Total current liabilities 4,754,337 4,797,593 Derivative liability 54 646,283 Total liabilities $ 4,754,391 $ 5,443,876 Total stockholders’ equity 1 68,306,384 181,292,897 Total Liabilities and Stockholders’ Equity $ 173,060,775 $ 186,736,773 |
Condensed Statements of Income and Comprehensive Income (Loss) | Year Ended December 31, 2023 2022 Revenue - - Selling, general and administrative expenses $ 708,638 $ 515,294 Loss from Operations (708,638 ) (515,294 ) Equity in earnings of unconsolidated subsidiaries (9,883,626 ) (17,489,197 ) Loss on derivative liability 646,229 1,417,251 Other Income (Expense) - - Income before Income Taxes (9,946,035 ) (16,587,240 ) Provision for Income Taxes - (15,062 ) Net Income $ (9,946,035 ) $ (16,602,302 ) Other comprehensive income /(loss) (3,040,994 ) (18,010,708 ) Total Comprehensive Income (loss) $ (12,987,029 ) $ (34,613,010 ) |
Schedule of Cash Flow | Year Ended December 31, 2023 2022 Net Cash Used in Operating Activities $ (708,641 ) $ (374,357 ) Net Cash Used in Investing Activities (500,000 ) (6,502,000 ) Net Cash Provided by Financing Activities (43,253 ) (329,399 ) Net Increase (Decrease) in Cash and Cash Equivalents (1,251,894 ) (7,205,755 ) Cash and Cash Equivalents - Beginning of Year 1,930,241 9,135,996 Cash and Cash Equivalents - End of Year $ 678,347 $ 1,930,241 |
Organization and Business Bac_3
Organization and Business Background (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Millions | 12 Months Ended | ||||||||||
Feb. 23, 2022 USD ($) | Feb. 23, 2022 CNY (¥) | Jun. 09, 2021 | Jun. 24, 2009 USD ($) | Oct. 29, 2007 shares | Dec. 31, 2023 $ / shares | Dec. 31, 2022 $ / shares | Jun. 09, 2022 $ / shares | Dec. 31, 2010 | Feb. 10, 2010 USD ($) | Jun. 24, 2009 ¥ / shares | |
Organization and Business Background [Line Items] | |||||||||||
Common stock, par value (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Reverse stock split | 1-for-10 | 1-for-10 | |||||||||
Percentage of ownership | 100% | ||||||||||
Registered capital (in Dollars) | $ 60,000,000 | ||||||||||
Exercise price per share (in Yuan Renminbi per share) | ¥ / shares | ¥ 1 | ||||||||||
Percentage of distributable profit | 100% | ||||||||||
Subsidary ownership percentage | 100% | ||||||||||
Dongfang Holding [Member] | |||||||||||
Organization and Business Background [Line Items] | |||||||||||
Aggregate shares of common stock (in Shares) | shares | 7,450,497 | ||||||||||
Percentage of ownership | 100% | ||||||||||
Baoding Shengde [Member] | |||||||||||
Organization and Business Background [Line Items] | |||||||||||
Percentage of ownership | 100% | ||||||||||
Registered capital (in Dollars) | $ 10,000,000 | ||||||||||
Loan agreement to terminate (in Dollars) | $ 10,000,000 | ||||||||||
Dongfang Paper [Member] | |||||||||||
Organization and Business Background [Line Items] | |||||||||||
Percentage of ownership | 100% | ||||||||||
Percentage of annual net profits | 80% | ||||||||||
Principal amount (in Dollars) | $ 10,000,000 | ||||||||||
Loan amount (in Dollars) | $ 10,000,000 | ||||||||||
Percentage of revenue | 99.88% | 99.74% | |||||||||
Percentage of total assets | 94.93% | ||||||||||
Hebei Tengsheng [Member] | |||||||||||
Organization and Business Background [Line Items] | |||||||||||
Consideration amount | $ 45,000,000 | ¥ 320 | |||||||||
Tengsheng Paper [Member] | |||||||||||
Organization and Business Background [Line Items] | |||||||||||
Percentage of total assets | 88.54% |
Organization and Business Bac_4
Organization and Business Background (Details) - Schedule of Subsidiaries and Variable Interest Entities | 12 Months Ended | |
Dec. 31, 2023 | ||
Dongfang Holding [Member] | ||
Subsidiary: | ||
Date of Incorporation or Establishment | November 13, 2006 | |
Place of Incorporation or Establishment | BVI | |
Percentage of Ownership | 100% | |
Principal Activity | Inactive investment holding | |
Shengde Holdings [Member] | ||
Subsidiary: | ||
Date of Incorporation or Establishment | February 25, 2009 | |
Place of Incorporation or Establishment | State of Nevada | |
Percentage of Ownership | 100% | |
Principal Activity | Investment holding | |
Baoding Shengde [Member] | ||
Subsidiary: | ||
Date of Incorporation or Establishment | June 1, 2009 | |
Place of Incorporation or Establishment | PRC | |
Percentage of Ownership | 100% | |
Principal Activity | Paper production and distribution | |
Qianrong [Member] | ||
Subsidiary: | ||
Date of Incorporation or Establishment | July 15, 2021 | |
Place of Incorporation or Establishment | PRC | |
Percentage of Ownership | 100% | |
Principal Activity | New material technology service | |
Dongfang Paper [Member] | ||
Subsidiary: | ||
Date of Incorporation or Establishment | March 10, 1996 | |
Place of Incorporation or Establishment | PRC | |
Percentage of Ownership | [1] | |
Principal Activity | Paper production and distribution | |
Tengsheng Paper [Member] | ||
Subsidiary: | ||
Date of Incorporation or Establishment | April 07, 2011 | |
Place of Incorporation or Establishment | PRC | |
Percentage of Ownership | [2] | |
Principal Activity | Paper production and distribution | |
[1]Dongfang Paper is treated as a 100% controlled variable interest entity of the Company.[2]Tengsheng Paper is 100% subsidiary of Dongfang Paper. |
Organization and Business Bac_5
Organization and Business Background (Details) - Schedule of Aggregate Carrying Value of Dongfang Paper’s Assets and Liabilities - VIE [Member] - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and bank balances | $ 2,807,608 | $ 3,427,717 |
Restricted cash | 472,983 | |
Accounts receivable | 575,526 | |
Inventories | 3,555,235 | 2,852,553 |
Prepayments and other current assets | 18,617,351 | 20,134,386 |
Due from related parties | 289,173 | 7,418,274 |
Total current assets | 26,317,876 | 33,832,930 |
Prepayment on property, plant and equipment | 1,031,502 | |
Operating lease right-of-use assets, net | 528,648 | 672,722 |
Finance lease right-of-use assets, net | 1,939,970 | |
Property, plant, and equipment, net | 158,027,099 | 143,534,690 |
Deferred tax asset non-current | ||
Total Assets | 184,873,623 | 181,011,814 |
Current Liabilities | ||
Short-term bank loans | 5,598,311 | |
Current portion of long-term loans | 2,780,014 | 4,835,885 |
Lease liability | 100,484 | 224,497 |
Accounts payable | 4,991 | 5,025 |
Advance from customers | 136,167 | |
Accrued payroll and employee benefits | 231,568 | 143,156 |
Other payables and accrued liabilities | 11,843,973 | 4,887,584 |
Income taxes payable | 417,906 | |
Total current liabilities | 15,097,197 | 16,112,364 |
Long-term loans | 4,503,932 | 40,203 |
Deferred gain on sale-leaseback | 52,314 | |
Lease liability - non-current | 483,866 | 579,997 |
Total liabilities | $ 20,084,995 | $ 16,784,878 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) | 12 Months Ended | ||||||
Jul. 07, 2022 | Apr. 01, 2019 | May 01, 2018 | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2021 USD ($) | |
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Allowance for doubtful accounts | $ 11,745 | $ 881,878 | $ 69,053 | ||||
Provision in inventories | $ 3,555,235 | 2,872,622 | |||||
Reserve fund percentage | 50% | ||||||
Reserve fund | |||||||
Statutory reserve percentage | 50% | ||||||
Capital reserve | $ 11,811,470 | ¥ 75,030,000 | |||||
Ttotal provision for employee benefit | |||||||
Incurred cost | |||||||
Research and development expenses | 90,766 | 145,538 | |||||
Recognized subsidies | |||||||
Value added tax | 13% | ||||||
Stock Split | 78.209 | ||||||
Foreign currency exchange rate, description | The current exchange rates used by the Company as of December 31, 2023, and 2022 to translate the Chinese RMB to the U.S. Dollars are 7.0827:1, and 6.9646:1, respectively. Revenues and expenses are translated using the average exchange rates prevailing throughout the respective years at 7.0558:1 and 6.75731 for the years ended December 31, 2023, and 2022, respectively. | ||||||
Maximum [Member] | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Value added tax | 17% | ||||||
Minimum [Member] | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Value added tax | 16% | ||||||
United States [Member] | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Provision in inventories | $ 2,959 | ||||||
Board of Directors [Member] | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Allowance for doubtful accounts | $ 881,878 | $ 69,053 | |||||
Par value per share of stock (in Dollars per share) | $ / shares | $ 0.001 | ||||||
PRC [Member] | |||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||
Reserve fund percentage | 10% |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of Allowance of Doubtful Accounts - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Allowance of Doubtful Accounts [Abstract] | ||
Opening balance | $ 881,878 | $ 69,053 |
Provision (Reversal) for the year | (858,689) | 843,779 |
Exchange difference | (11,444) | (30,954) |
Closing balance | $ 11,745 | $ 881,878 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of Property, Plant, and Equipment Using Straight-Line Method | 12 Months Ended |
Dec. 31, 2023 | |
Land use right [Member] | |
Schedule of Property, Plant, and Equipment Using Straight-Line Method [Line Items] | |
Property, Plant, and Equipment Term Descriptions | Over the lease term |
Building and improvements [Member] | |
Schedule of Property, Plant, and Equipment Using Straight-Line Method [Line Items] | |
Property, Plant, and Equipment Term | 30 years |
Machinery and equipment [Member] | Minimum [Member] | |
Schedule of Property, Plant, and Equipment Using Straight-Line Method [Line Items] | |
Property, Plant, and Equipment Term | 5 years |
Machinery and equipment [Member] | Maximum [Member] | |
Schedule of Property, Plant, and Equipment Using Straight-Line Method [Line Items] | |
Property, Plant, and Equipment Term | 15 years |
Vehicles [Member] | |
Schedule of Property, Plant, and Equipment Using Straight-Line Method [Line Items] | |
Property, Plant, and Equipment Term | 15 years |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Restricted Cash [Line Items] | ||
Restricted cash | $ 472,983 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Raw Materials | ||
Raw materials | $ 372,968 | $ 1,471,436 |
Semi-finished Goods | 300,207 | 132,810 |
Finished Goods | 2,885,019 | 1,268,376 |
Total inventory, gross | 3,558,194 | 2,872,622 |
Inventory reserve | (2,959) | |
Total inventory, net | 3,555,235 | 2,872,622 |
Recycled Paper Board [Member] | ||
Raw Materials | ||
Raw materials | 198,744 | 1,258,161 |
Recycled White Scrap Paper [Member] | ||
Raw Materials | ||
Raw materials | 10,647 | 10,809 |
Gas [Member] | ||
Raw Materials | ||
Raw materials | 21,428 | 42,237 |
Base Paper and Other Raw Materials [Member] | ||
Raw Materials | ||
Raw materials | $ 142,149 | $ 160,229 |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) - Schedule of Prepayments and Other Current Assets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Prepayments and Other Current Assets [Abstract] | ||
Prepaid land lease | $ 172,300 | |
Prepayment for purchase of materials | 5,446,823 | 12,941,951 |
Value-added tax recoverable | 13,409,459 | 13,640,868 |
Prepaid gas | 116,372 | 27,462 |
Others | 8,636 | 424,546 |
Total | $ 18,981,290 | $ 27,207,127 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment (Details) [Line Items] | ||
Property and equipment lease term, description | land use rights represented twenty-three parcel of state-owned lands located in Xushui District and Wei County of Hebei Province in China, with lease terms of 50 years expiring from 2061 to 2068. | land use rights represented twenty-three 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, respectively. |
Plant and equipment other net | $ 163,974,022 | $ 151,569,898 |
Depreciation and amortization of property, plant and equipment | 14,225,990 | 14,788,036 |
Loss from disposal and impairment of property, plant and equipment | $ (1,500,298) | |
Property and equipment lease terms | 50 years | 50 years |
Dongfang Paper [Member] | ||
Property, Plant and Equipment (Details) [Line Items] | ||
Plant and equipment other net | $ 280,466 | |
Dongfang Paper [Member] | Land use Right [Member] | Long-term Loan from Credit Union of Tengsheng Peper [Member] | ||
Property, Plant and Equipment (Details) [Line Items] | ||
Plant and equipment other net | 5,135,132 | |
Hebei Tengsheng [Member] | Land use Right [Member] | ||
Property, Plant and Equipment (Details) [Line Items] | ||
Plant and equipment other net | 4,910,034 | 5,111,014 |
Tengsheng Paper [Member] | Land use Right [Member] | Long-term Loan from Credit Union of Baoding Shengde [Member] | ||
Property, Plant and Equipment (Details) [Line Items] | ||
Plant and equipment other net | $ 3,781,366 | |
Tengsheng Paper [Member] | Land use Right [Member] | Long-term Loan from Credit Union of Baoding Shengde [Member] | ||
Property, Plant and Equipment (Details) [Line Items] | ||
Plant and equipment other net | $ 3,948,953 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of Property, Plant and Equipment - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Property, Plant and Equipment [Line Items] | ||
Totals | $ 308,421,734 | $ 286,406,838 |
Less: accumulated depreciation and amortization | (144,447,712) | (134,836,940) |
Property, Plant and Equipment, net | 163,974,022 | 151,569,898 |
Land use rights [Member] | ||
Schedule of Property, Plant and Equipment [Line Items] | ||
Totals | 81,504,608 | 57,686,220 |
Building and improvements [Member] | ||
Schedule of Property, Plant and Equipment [Line Items] | ||
Totals | 67,939,059 | 68,300,987 |
Machinery and equipment [Member] | ||
Schedule of Property, Plant and Equipment [Line Items] | ||
Totals | 158,629,858 | 158,498,316 |
Vehicles [Member] | ||
Schedule of Property, Plant and Equipment [Line Items] | ||
Totals | 348,209 | 681,617 |
Construction in progress [Member] | ||
Schedule of Property, Plant and Equipment [Line Items] | ||
Totals | $ 1,239,698 |
Leases (Details)
Leases (Details) | 12 Months Ended | ||||||||
Aug. 17, 2020 USD ($) | Aug. 06, 2020 USD ($) | Aug. 06, 2020 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Nov. 30, 2024 | Nov. 30, 2023 | Dec. 31, 2022 USD ($) | Aug. 06, 2020 CNY (¥) | |
Leases [Line Items] | |||||||||
Leases back term | 3 years | 3 years | |||||||
Implicit interest rate | 15.60% | ||||||||
Sale lease-back transaction interest rate amount | $ 567,099 | ||||||||
Leased equipment net | $ 1,939,970 | ||||||||
Equipment [Member] | |||||||||
Leases [Line Items] | |||||||||
Leased equipment net | $ 1,939,970 | ||||||||
Lease Financing Agreement [Member] | |||||||||
Leases [Line Items] | |||||||||
Total financing proceeds in amount | $ 2,300,000 | ¥ 16,000,000 | |||||||
Forecast [Member] | |||||||||
Leases [Line Items] | |||||||||
Operating lease | 1 year | ||||||||
Non-Cancellable Agreement [Member] | |||||||||
Leases [Line Items] | |||||||||
Operating lease | 1 year | ||||||||
TAC Leasing Co., Ltd. [Member] | |||||||||
Leases [Line Items] | |||||||||
Sale-leaseback arrangement sold leased equipment | $ 2,300,000 | ¥ 16,000,000 | |||||||
TLCL [Member] | |||||||||
Leases [Line Items] | |||||||||
Payment of nominal purchase price | $ 14 | ¥ 100 | |||||||
Right of use assets and net present value of minimum lease payments | $ 2,349,452 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Lease Expense | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Schedule of lease expense [Abstract] | |
Operating lease cost | ¥ 141,189 |
Short-term lease cost | |
Lease cost | ¥ 141,189 |
Leases (Details) - Schedule Ope
Leases (Details) - Schedule Operating Leases | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash outflow from operating lease | ¥ 141,189 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Maturities of its Lease Liabilities | Dec. 31, 2023 USD ($) |
Schedule of Maturities of its Lease Liabilities [Line Items] | |
2024 | $ 141,189 |
2025 | 141,189 |
2026 | 141,189 |
2027 | 141,189 |
2028 | 141,189 |
Thereafter | |
Total operating lease payments | 705,945 |
Less: Interest | (121,595) |
Present value of lease liabilities | 584,350 |
Less: current portion, record in current liabilities | (100,484) |
Present value of lease liabilities | $ 483,866 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Weighted Average Remaining Lease Terms and Discount Rates | Dec. 31, 2023 |
Schedule of weighted average remaining lease terms and discount rates [Abstract] | |
Weighted average remaining lease term (years) | 4 years 7 months 6 days |
Weighted average discount rate | 7.56% |
Loans Payable (Details)
Loans Payable (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||
Apr. 16, 2014 | Jul. 15, 2013 | May 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Aug. 24, 2023 | Jun. 29, 2023 USD ($) | May 29, 2023 USD ($) | Feb. 26, 2023 | Nov. 30, 2022 USD ($) | Nov. 30, 2022 CNY (¥) | Nov. 15, 2022 | Oct. 31, 2022 USD ($) | Oct. 31, 2022 CNY (¥) | Jul. 01, 2022 CNY (¥) | Nov. 06, 2018 | Jun. 21, 2018 | |
Loan Payable [Line Items] | |||||||||||||||||
Short-term bank loans | $ 423,567 | $ 5,598,311 | |||||||||||||||
Unsecured bank loans | $ 574,333 | $ 423,567 | |||||||||||||||
Average short-term borrowing rates | 4.48% | 4.72% | |||||||||||||||
Long-term loan | $ 11,378,429 | $ 9,040,002 | |||||||||||||||
Current portion of loan amount | 6,874,497 | 4,835,884 | |||||||||||||||
Non-current liabilities | 4,503,932 | 4,204,118 | |||||||||||||||
Borrowed (in Yuan Renminbi) | $ 7,059,455 | ¥ 50,000,000 | $ 7,059,455 | ¥ 50,000,000 | |||||||||||||
Interest expense short-term bank loans and long-term loans | 977,678 | 988,997 | |||||||||||||||
Rural Credit Union of Xushui District Loan 1 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Long-term loan | 1,234,816 | ||||||||||||||||
Long term debt term | 5 years | 5 years | |||||||||||||||
Long term debt, description | originally due in various installments from June 21, 2014 to November 18, 2018. | ||||||||||||||||
Interest payment percent | 7.68% | 7% | |||||||||||||||
Rural Credit Union of Xushui District Loan 2 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Long-term loan | $ 3,528,315 | 3,589,582 | |||||||||||||||
Long term debt term | 5 years | 3 years | 5 years | ||||||||||||||
Long term debt, description | originally due and payable in various installments from December 21, 2013 to July 26, 2018. | ||||||||||||||||
Interest payment percent | 7.68% | 7% | |||||||||||||||
Long term due date | Aug. 24, 2026 | ||||||||||||||||
Secured loan net book value | 280,466 | ||||||||||||||||
Current portion of loan amount | 1,269,290 | ||||||||||||||||
Non-current liabilities | 2,259,025 | ||||||||||||||||
Rural Credit Union of Xushui District Loan 3 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Long-term loan | $ 2,259,026 | 2,297,332 | |||||||||||||||
Interest payment percent | 7.68% | 7% | |||||||||||||||
Rural Credit Union of Xushui District Loan 4 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Long-term loan | $ 1,835,458 | 1,866,582 | |||||||||||||||
Interest payment percent | 7.56% | 7% | |||||||||||||||
Jiangna Yu [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Long-term loan | 51,690 | ¥ 10,667 | |||||||||||||||
Current portion of loan amount | 11,486 | ||||||||||||||||
Non-current liabilities | 40,204 | ||||||||||||||||
Borrowed (in Yuan Renminbi) | ¥ | ¥ 400,000 | ||||||||||||||||
Rural Credit Union of Xushui District Loan 5 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Long-term loan | $ 2,541,404 | ||||||||||||||||
Long term debt term | 2 years | ||||||||||||||||
Interest payment percent | 7% | ||||||||||||||||
Current portion of loan amount | $ 1,284,820 | ||||||||||||||||
Non-current liabilities | 1,256,584 | ||||||||||||||||
Rural Credit Union of Xushui District Loan 6 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Long-term loan | $ 1,214,226 | ||||||||||||||||
Long term debt term | 3 years | ||||||||||||||||
Interest payment percent | 7% | ||||||||||||||||
Current portion of loan amount | $ 225,903 | ||||||||||||||||
Non-current liabilities | $ 988,323 | ||||||||||||||||
Working Capital Loan Agreement ICBC [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Loans fixed interest rate | 4.785% | ||||||||||||||||
ICBC Loan 1 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Short-term bank loans | $ 71,743 | ||||||||||||||||
Short term debt, description | paid off the remaining balance of the loan in August 2023. | ||||||||||||||||
ICBC Loan 1 [Member] | Mr. Liu [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Short-term bank loans | $ 5,023,978 | ||||||||||||||||
ICBC Loan 2 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Loans fixed interest rate | 4.25% | ||||||||||||||||
Short-term bank loans | 287,167 | ||||||||||||||||
ICBC Loan 2 [Member] | Working Capital Loan Agreement ICBC [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Short-term bank loans | 287,167 | ||||||||||||||||
ICBC Loan 3 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Loans fixed interest rate | 4.25% | ||||||||||||||||
Short-term bank loans | 143,583 | ||||||||||||||||
China Construction Bank Loan [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Loans fixed interest rate | 3.95% | ||||||||||||||||
Short-term bank loans | 143,583 | ||||||||||||||||
ICBC Loan 4 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Loans fixed interest rate | 3.55% | 4.25% | |||||||||||||||
Short-term bank loans | $ 423,567 | $ 423,567 | $ 423,567 | ||||||||||||||
ICBC Loan 5 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Loans fixed interest rate | 3.45% | ||||||||||||||||
Short-term bank loans | $ 2,824 | ||||||||||||||||
ICBC Loan 6 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Loans fixed interest rate | 3.45% | ||||||||||||||||
Short-term bank loans | $ 70,594 | ||||||||||||||||
ICBC Loan 7 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Loans fixed interest rate | 3.45% | ||||||||||||||||
Short-term bank loans | $ 350,149 | ||||||||||||||||
Industrial and Commercial Bank of China (“ICBC”) Loan 1 [Member] | |||||||||||||||||
Loan Payable [Line Items] | |||||||||||||||||
Short-term bank loans | $ 5,023,978 |
Loans Payable (Details) - Sched
Loans Payable (Details) - Schedule of Short-Term Bank Loans - USD ($) | Dec. 31, 2023 | Jun. 29, 2023 | May 29, 2023 | Dec. 31, 2022 |
Schedule of Short-Term Bank Loans [Line Items] | ||||
Total short-term bank loans | $ 423,567 | $ 5,598,311 | ||
Industrial and Commercial Bank of China (“ICBC”) Loan 1 [Member] | ||||
Schedule of Short-Term Bank Loans [Line Items] | ||||
Total short-term bank loans | 5,023,978 | |||
ICBC Loan 2 [Member] | ||||
Schedule of Short-Term Bank Loans [Line Items] | ||||
Total short-term bank loans | 287,167 | |||
ICBC Loan 3 [Member] | ||||
Schedule of Short-Term Bank Loans [Line Items] | ||||
Total short-term bank loans | 143,583 | |||
China Construction Bank Loan [Member] | ||||
Schedule of Short-Term Bank Loans [Line Items] | ||||
Total short-term bank loans | 143,583 | |||
ICBC Loan 4 [Member] | ||||
Schedule of Short-Term Bank Loans [Line Items] | ||||
Total short-term bank loans | 423,567 | $ 423,567 | $ 423,567 | |
ICBC Loan 5 [Member] | ||||
Schedule of Short-Term Bank Loans [Line Items] | ||||
Total short-term bank loans | 2,824 | |||
ICBC Loan 6 [Member] | ||||
Schedule of Short-Term Bank Loans [Line Items] | ||||
Total short-term bank loans | 70,594 | |||
ICBC Loan 7 [Member] | ||||
Schedule of Short-Term Bank Loans [Line Items] | ||||
Total short-term bank loans | $ 350,149 |
Loans Payable (Details) - Sch_2
Loans Payable (Details) - Schedule of Long Term Loans - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Long Term Loans [Line Items] | ||
Total | $ 11,378,429 | $ 9,040,002 |
Less: Current portion of long-term loans | (6,874,497) | (4,835,884) |
Long-term loans | 4,503,932 | 4,204,118 |
Rural Credit Union of Xushui District Loan 1 [Member] | ||
Schedule of Long Term Loans [Line Items] | ||
Total | 1,234,816 | |
Rural Credit Union of Xushui District Loan 2 [Member] | ||
Schedule of Long Term Loans [Line Items] | ||
Total | 3,528,315 | 3,589,582 |
Less: Current portion of long-term loans | (1,269,290) | |
Long-term loans | 2,259,025 | |
Rural Credit Union of Xushui District Loan 3 [Member] | ||
Schedule of Long Term Loans [Line Items] | ||
Total | 2,259,026 | 2,297,332 |
Rural Credit Union of Xushui District Loan 4 [Member] | ||
Schedule of Long Term Loans [Line Items] | ||
Total | 1,835,458 | 1,866,582 |
Rural Credit Union of Xushui District Loan 5 [Member] | ||
Schedule of Long Term Loans [Line Items] | ||
Total | 2,541,404 | |
Less: Current portion of long-term loans | (1,284,820) | |
Long-term loans | 1,256,584 | |
Rural Credit Union of Xushui District Loan 6 [Member] | ||
Schedule of Long Term Loans [Line Items] | ||
Total | 1,214,226 | |
Less: Current portion of long-term loans | (225,903) | |
Long-term loans | 988,323 | |
Yujiangna [Member] | ||
Schedule of Long Term Loans [Line Items] | ||
Total | $ 51,690 |
Loans Payable (Details) - Sch_3
Loans Payable (Details) - Schedule of Long-Term Debt Repayments - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Long-Term Debt Repayments [Abstract] | ||
2024 | $ 6,874,497 | |
2025 | 3,374,419 | |
2026 & after | 1,129,513 | |
Total | $ 11,378,429 | $ 9,040,002 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||||||
Nov. 23, 2018 USD ($) | Dec. 10, 2014 USD ($) | Dec. 31, 2019 shares | Feb. 28, 2018 USD ($) | Dec. 31, 2015 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2016 USD ($) | Aug. 31, 2023 USD ($) | Aug. 31, 2023 CNY (¥) | Nov. 30, 2022 USD ($) | Nov. 30, 2022 CNY (¥) | Oct. 31, 2022 USD ($) | Oct. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 08, 2021 USD ($) | Dec. 08, 2021 CNY (¥) | Oct. 14, 2016 USD ($) | Jul. 13, 2015 USD ($) | Mar. 01, 2015 USD ($) | Mar. 01, 2015 CNY (¥) | |
Related Party Transactions [Line Items] | |||||||||||||||||||||
Loans repaid | $ 4,235,673 | ¥ 30,000,000 | |||||||||||||||||||
Outstanding loan balance | $ 197,338 | ||||||||||||||||||||
D | $ 727,433 | 727,433 | |||||||||||||||||||
Unsecured amount | $ 574,333 | 423,567 | |||||||||||||||||||
Loan due description | Mr. Zhenyong Liu agreed to extend the loan for additional 3 years and the remaining balance will be due on July 12, 2021. | ||||||||||||||||||||
Interest expense | |||||||||||||||||||||
Interest paid (in Shares) | shares | 94,636 | ||||||||||||||||||||
Loans amount | |||||||||||||||||||||
Borrowing amount | $ 7,059,455 | ¥ 50,000,000 | $ 7,059,455 | ¥ 50,000,000 | |||||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||||||||
Related Party Transactions [Line Items] | |||||||||||||||||||||
Borrowings amount | $ 17,201,342 | ¥ 120,000,000 | |||||||||||||||||||
Unsecured amount | $ 2,883,091 | $ 4,324,636 | |||||||||||||||||||
Loans Payable [Member] | |||||||||||||||||||||
Related Party Transactions [Line Items] | |||||||||||||||||||||
Outstanding loan balance | 194,047 | ||||||||||||||||||||
Mr. Zhengyong Liu [Member] | |||||||||||||||||||||
Related Party Transactions [Line Items] | |||||||||||||||||||||
Interest income | 290,275 | ||||||||||||||||||||
Mr. Zhengyong Liu [Member] | |||||||||||||||||||||
Related Party Transactions [Line Items] | |||||||||||||||||||||
Loans repaid | $ 2,249,279 | ||||||||||||||||||||
Interest paid | $ 20,400 | $ 391,374 | $ 288,596 | ||||||||||||||||||
Outstanding loan balance | 361,915 | 368,052 | |||||||||||||||||||
D | $ 8,742,278 | ||||||||||||||||||||
Interest rate on loans | 4.35% | ||||||||||||||||||||
Due date | Dec. 10, 2017 | ||||||||||||||||||||
Repaid debt | $ 6,012,416 | ||||||||||||||||||||
Mr. Zhengyong Liu [Member] | Loans Payable [Member] | |||||||||||||||||||||
Related Party Transactions [Line Items] | |||||||||||||||||||||
Outstanding interest amount | $ 42,357 | 43,075 | |||||||||||||||||||
Mr Zhenyong Liu [Member] | |||||||||||||||||||||
Related Party Transactions [Line Items] | |||||||||||||||||||||
Due date | Jul. 12, 2018 | ||||||||||||||||||||
Repayment of related party loans | $ 1,507,432 | ||||||||||||||||||||
Borrowing amount | $ 6,507,431 | ¥ 44,089,085 | |||||||||||||||||||
Fixed interest rate | 4.35% | 3% | 3% | ||||||||||||||||||
Mr Zhenyong Liu [Member] | Dongfang Paper [Member] | |||||||||||||||||||||
Related Party Transactions [Line Items] | |||||||||||||||||||||
Repayment of related party loans | $ 3,768,579 | ||||||||||||||||||||
Interest expense | $ 158,651 | ||||||||||||||||||||
Mr Zhenyong Liu [Member] | Chief Executive Officer [Member] | |||||||||||||||||||||
Related Party Transactions [Line Items] | |||||||||||||||||||||
Accrued interest | $ 598,319 | $ 608,465 |
Other Payables and Accrued Li_3
Other Payables and Accrued Liabilities (Details) - Schedule of Other Payables and Accrued Liabilities - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Other Payables and Accrued Liabilities [Abstract] | ||
Accrued electricity | $ 3,054 | $ 3,036 |
Accrued rental | 56,646 | |
Value-added tax payable | 696 | 69,053 |
Accrued interest to a related party | 598,319 | 608,465 |
Payable for purchase of property, plant and equipment | 11,175,858 | 3,294,940 |
Accrued commission to salesmen | 47,040 | 19,524 |
Accrued bank loan interest | 1,070,708 | 1,595,354 |
Others | 16,842 | 18,540 |
Totals | $ 12,912,517 | $ 5,665,558 |
Derivative Liabilities (Details
Derivative Liabilities (Details) - Schedule of Weighted-Average Assumptions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Schedule of Weighted-Average Assumptions [Line Items] | |
Expected dividend yield (in Dollars) | |
Minimum [Member] | |
Schedule of Weighted-Average Assumptions [Line Items] | |
Expected term | 11 months 4 days |
Expected average volatility | 74% |
Risk-free interest rate | 0.19% |
Maximum [Member] | |
Schedule of Weighted-Average Assumptions [Line Items] | |
Expected term | 2 years 9 months |
Expected average volatility | 102% |
Risk-free interest rate | 4.01% |
Derivative Liabilities (Detai_2
Derivative Liabilities (Details) - Schedule of Fair Value Measurements - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Fair Value Measurements [Line Items] | ||
Balance at December 31, 2022 | $ 646,283 | |
Change in fair value of derivative liability | (646,229) | $ (1,417,251) |
Balance at December 31, 2023 | $ 54 | $ 646,283 |
Derivative Liabilities (Detai_3
Derivative Liabilities (Details) - Schedule of Loss on Derivative Liability Included in the Income Statement - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Liabilities [Abstract] | ||
Day one loss due to derivative liabilities as warrant | ||
(Gain) Loss on change in fair value of derivative liability | (646,229) | (1,417,251) |
Total | $ (646,229) | $ (1,417,251) |
Common Stock (Details)
Common Stock (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Aug. 15, 2022 | Jun. 09, 2022 | Jun. 09, 2021 | Mar. 01, 2021 | Jan. 20, 2021 | Feb. 28, 2021 | Dec. 31, 2023 | |
Common Stock [Line Items] | |||||||
Aggregate share | 2,618,182 | ||||||
Warrants purchase | 2,618,182 | ||||||
Common stock and warrants | 2,618,182 | ||||||
Gross proceeds (in Dollars) | $ 21,900,000 | $ 14,400,000 | |||||
Corresponding price per share (in Dollars per share) | $ 5.5 | ||||||
Exercise price of warrants (in Dollars per share) | $ 5.5 | ||||||
Aggregate shares of common stock | 2,927,786 | ||||||
Warrants to purchase shares | 1,463,893 | ||||||
Shares of common stock | 150,000 | 1,463,893 | |||||
Warrant price (in Dollars per share) | $ 7.5 | ||||||
Warrant exercise price (in Dollars per share) | $ 7.5 | $ 5.5 | |||||
Reverse stock split | 1-for-10 | 1-for-10 | |||||
Reverse stock split, per share (in Dollars per share) | $ 0.001 | ||||||
Total fair value of stock of grant (in Dollars) | $ 156,000 |
Warrants (Details)
Warrants (Details) - USD ($) | 1 Months Ended | ||||||
Mar. 01, 2021 | Jan. 20, 2021 | Apr. 29, 2020 | Feb. 28, 2021 | Jan. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Warrants (Details) [Line Items] | |||||||
Issuance of common stock and warrants | 2,618,182 | ||||||
Issuance of warrant | 6,750 | 1,410,690 | 88,000 | ||||
Warrant exercise price (in Dollars per share) | $ 7.5 | $ 5.5 | |||||
Warrant outstanding | 1,457,143 | 1,207,492 | 352,000 | ||||
Warrants to purchase shares of common stock | 1,463,893 | 2,618,182 | |||||
Intrinsic value of the warrants (in Dollars) | |||||||
Private Placement [Member] | |||||||
Warrants (Details) [Line Items] | |||||||
Issuance of common stock and warrants | 440,000 | ||||||
Warrant [Member] | |||||||
Warrants (Details) [Line Items] | |||||||
Issuance of common stock and warrants | 2,927,786 | 440,000 | |||||
Exercise price (in Dollars per share) | $ 7.425 | ||||||
Warrant exercise price (in Dollars per share) | $ 7.5 | $ 5.5 | $ 7.425 | $ 5.5 | |||
Warrants to purchase shares of common stock | 1,463,893 | 2,618,182 |
Warrants (Details) - Schedule o
Warrants (Details) - Schedule of Stock Warrant Activities | 12 Months Ended |
Dec. 31, 2023 shares | |
Schedule of Stock Warrant Activities [Line Items] | |
Outstanding and exercisable at beginning of the period, Number | 3,016,635 |
Outstanding and exercisable at beginning of the period, Weight average exercise price | 6.6907 |
Issued during the period, Number | |
Exercised during the period, Number | |
Cancelled or expired during the period, Number | |
Outstanding and exercisable at end of the period, Number | 3,016,635 |
Outstanding and exercisable at end of the period, Weight average exercise price | 6.6907 |
Warrants (Details) - Schedule_2
Warrants (Details) - Schedule of Outstanding and Exercisable Warrants - Warrant [Member] | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Schedule of Outstanding and Exercisable Warrants [Line Items] | |
Warrants Outstanding, Number of Shares | shares | 3,016,635 |
Warrants Outstanding, Weighted Average Remaining Contractual life (in years) | 2 years 1 month 2 days |
Warrants Outstanding, Weighted Average Exercise Price | $ / shares | $ 6.6907 |
Warrants Exercisable, Number of Shares | shares | 3,016,635 |
Warrants Exercisable, Weighted Average Exercise Price | $ / shares | $ 6.6907 |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of Basic and Diluted Net Income Per Share - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Basic loss per share | ||
Net loss for the year - numerator | $ (9,946,035) | $ (16,571,308) |
Weighted average common stock outstanding - denominator | 10,065,920 | 9,972,788 |
Net loss per share | $ (0.99) | $ (1.66) |
Diluted loss per share | ||
Net loss for the year - numerator | $ (9,946,035) | $ (16,571,308) |
Weighted average common stock outstanding - denominator | 10,065,920 | 9,972,788 |
Effect of dilution | ||
Diluted loss per share | $ (0.99) | $ (1.66) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |||
Dec. 22, 2017 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||
Additional income tax expense (in Dollars) | $ 80,000 | |||
Description of carry forwards expire | These carry forwards would expire, if not utilized, during the period of 2030 through 2035. | |||
Percentage of valuation allowance | 100% | 100% | ||
Effective income tax rate | (3.60%) | (241.00%) | ||
Income tax, statute of limitations period | 5 years | |||
Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Statutory tax rate | 35% | 34% | ||
Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Statutory tax rate | 21% | |||
Shengde Holdings [Member] | Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Statutory tax rate | 0% | |||
PRC [Member] | ||||
Income Taxes [Line Items] | ||||
Statutory tax rate | 25% | |||
Net operating losses (in Dollars) | $ 62,499 | $ 530,581 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Provisions for Income Taxes - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Provision for Income Taxes | ||
Current Tax Provision U.S. | $ 15,062 | |
Current Tax Provision PRC | 346,954 | 1,435,173 |
Deferred Tax Provision PRC | 10,261,104 | |
Total Provision for (Deferred tax benefit)/ Income Taxes | $ 346,954 | $ 11,711,339 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Deferred Tax - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets (liabilities) | ||
Depreciation and amortization of property, plant and equipment | $ 16,922,756 | $ 15,474,485 |
Impairment of property, plant and equipment | 585,380 | 796,559 |
Miscellaneous | 135,714 | 615,436 |
Net operating loss carryover of PRC company | 274,525 | 213,620 |
(Gain)/Loss on asset disposal | (64,065) | |
Total deferred tax assets | 17,854,310 | 17,100,100 |
Less: Valuation allowance | (17,854,310) | (17,100,100) |
Total deferred tax assets, net |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Reconciles the Statutory Rates Effective Tax Rates | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Abstract] | ||
PRC Statutory rate | 25% | 25% |
Effect of different tax jurisdiction | (20.70%) | (17.00%) |
Change in valuation allowance | (7.90%) | (249.00%) |
Effective income tax rate | (3.60%) | (241.00%) |
Stock Incentive Plans (Details)
Stock Incentive Plans (Details) - USD ($) | Oct. 31, 2023 | Aug. 15, 2022 | Nov. 12, 2021 |
Stock Incentive Plans [Line Items] | |||
Number of shares | 1,500,000 | 150,000 | |
Aggregate shares | 150,000 | ||
Fair value of stock (in Dollars) | $ 156,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) a | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 CNY (¥) a | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Aug. 07, 2013 USD ($) | |
Commitments and Contingencies (Details) [Line Items] | ||||||
Annual rental payment | $ 141,189 | ¥ 1,000,000 | ||||
Cash | 3,918,938 | $ 9,524,868 | ||||
Outstanding commitments amount | 3,499,936 | 4,329,279 | ||||
Long-term loan from financial institutions | $ 4,376,862 | ¥ 31,000,000 | $ 4,451,081 | ¥ 31,000,000 | ||
Minimum [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Expected payment term | 1 year | 1 year | ||||
Maximum [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Expected payment term | 3 years | 3 years | ||||
Xushui Land Lease [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Area of land (in Acres) | a | 32.95 | 32.95 | ||||
Lease expiration period | 30 years | 30 years | ||||
Annual rental payment | $ 16,943 | ¥ 120,000 | ||||
Employee One [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Cash | $ 2,770,000 | |||||
Employee Two [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Cash | 1,150,000 | |||||
Employee Three [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Cash | $ 4,310,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of Annual Rental Payment | Dec. 31, 2023 USD ($) |
Land lease [Member] | |
Commitments and Contingencies (Details) - Schedule of Annual Rental Payment [Line Items] | |
2024 | $ 16,943 |
2025 | 16,943 |
2026 | 16,943 |
2027 | 16,943 |
2028 | 16,943 |
Thereafter | 50,828 |
Total operating lease payments | 135,543 |
Building lease [Member] | |
Commitments and Contingencies (Details) - Schedule of Annual Rental Payment [Line Items] | |
2024 | 141,189 |
2025 | 141,189 |
2026 | 141,189 |
2027 | 141,189 |
2028 | 141,189 |
Thereafter | |
Total operating lease payments | 705,945 |
Less: Interest | (121,595) |
Present value of lease liabilities | 584,350 |
Less: current portion, record in current liabilities | (100,484) |
Present value of lease liabilities | $ 483,866 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of Financial Information for Reportable Segments - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Dongfang Paper [Member] | ||
Schedule of Financial Information for Reportable Segments [Line Items] | ||
Revenues | $ 85,106,864 | $ 98,725,408 |
Gross profit | 4,006,381 | 7,629,761 |
Depreciation and amortization | 4,168,755 | 4,782,157 |
Loss on impairment of assets | 905,226 | |
Interest income | 300,928 | 12,820 |
Interest expense | 503,740 | 653,525 |
Income tax expense(benefit) | 346,954 | 3,054,208 |
Net income (loss) | (109,770) | 780,465 |
Total assets | 57,139,592 | 63,365,986 |
Tengsheng Paper [Member] | ||
Schedule of Financial Information for Reportable Segments [Line Items] | ||
Revenues | 1,334,022 | 1,369,206 |
Gross profit | (2,995,369) | (2,942,893) |
Depreciation and amortization | 8,470,810 | 8,349,374 |
Loss on impairment of assets | 219,744 | |
Interest income | 2,376 | 1,209 |
Interest expense | 181,447 | 54,180 |
Income tax expense(benefit) | 7,062,139 | |
Net income (loss) | (9,004,792) | (17,162,887) |
Total assets | 127,734,031 | 117,645,828 |
Baoding Shengde [Member] | ||
Schedule of Financial Information for Reportable Segments [Line Items] | ||
Revenues | 106,064 | 257,820 |
Gross profit | (11,127) | 67,328 |
Depreciation and amortization | 1,586,425 | 1,656,505 |
Loss on impairment of assets | 375,328 | |
Interest income | 9,790 | 8,684 |
Interest expense | 291,675 | 320,246 |
Income tax expense(benefit) | 1,579,930 | |
Net income (loss) | (726,065) | (1,100,286) |
Total assets | 8,184,902 | 17,945,969 |
Not Attributable to Segments [Member] | ||
Schedule of Financial Information for Reportable Segments [Line Items] | ||
Revenues | ||
Gross profit | ||
Depreciation and amortization | ||
Loss on impairment of assets | ||
Interest income | 2,002 | 1,551 |
Interest expense | 7,656 | |
Income tax expense(benefit) | 15,062 | |
Net income (loss) | (105,408) | 880,406 |
Total assets | 1,685,124 | 5,489,450 |
Elimination of Inter-segment [Member] | ||
Schedule of Financial Information for Reportable Segments [Line Items] | ||
Revenues | ||
Gross profit | ||
Depreciation and amortization | ||
Loss on impairment of assets | ||
Interest income | ||
Interest expense | ||
Income tax expense(benefit) | ||
Net income (loss) | 30,994 | |
Total assets | ||
Enterprise-wide, consolidated [Member] | ||
Schedule of Financial Information for Reportable Segments [Line Items] | ||
Revenues | 86,546,950 | 100,352,434 |
Gross profit | 999,885 | 4,754,196 |
Depreciation and amortization | 14,225,990 | 14,788,036 |
Loss on impairment of assets | 1,500,298 | |
Interest income | 315,096 | 24,264 |
Interest expense | 984,518 | 1,027,951 |
Income tax expense(benefit) | 346,954 | 11,711,339 |
Net income (loss) | (9,946,035) | (16,571,308) |
Total assets | $ 194,743,649 | $ 204,447,233 |
Concentration and Major Custo_2
Concentration and Major Customers and Suppliers (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | No Single Customer [Member] | ||
Concentration and Major Customers and Suppliers (Details) [Line Items] | ||
Concentration credit risk, percentage | 10% | 10% |
one suppliers [Member] | Purchase [Member] | Supplier Concentration Risk [Member] | ||
Concentration and Major Customers and Suppliers (Details) [Line Items] | ||
Concentration credit risk, percentage | 72% | 76% |
Customer [Member] | Purchase [Member] | Supplier Concentration Risk [Member] | ||
Concentration and Major Customers and Suppliers (Details) [Line Items] | ||
Concentration credit risk, percentage | 17% | 15% |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) | May 01, 2015 USD ($) | May 01, 2015 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) |
Concentration of Credit Risk [Line Items] | ||||
Deposit Insurance Regulations | $ 70,595 | ¥ 500,000 | ||
Maximum coverage from FDIC | $ | $ 3,407,607 | |||
Maximum [Member] | ||||
Concentration of Credit Risk [Line Items] | ||||
Maximum coverage from FDIC | ¥ 24,135,060 | |||
PRC [Member] | ||||
Concentration of Credit Risk [Line Items] | ||||
Maximum coverage from FDIC | ¥ 500,000 |
Summarized Quarterly Financia_3
Summarized Quarterly Financial Data (Unaudited) (Details) - Schedule of Quarterly Financial Data - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
First [Member] | ||
Summarized Quarterly Financial Data (Unaudited) (Details) - Schedule of Quarterly Financial Data [Line Items] | ||
Revenues | $ 19,790,877 | $ 15,481,618 |
Gross (loss) profit | (276,999) | 310,445 |
Loss from operations | (2,772,361) | (2,990,436) |
Net loss | $ (2,733,165) | $ (2,488,214) |
Basic (in Dollars per share) | $ (0.27) | $ (0.03) |
Diluted (in Dollars per share) | $ (0.27) | $ (0.03) |
Second [Member] | ||
Summarized Quarterly Financial Data (Unaudited) (Details) - Schedule of Quarterly Financial Data [Line Items] | ||
Revenues | $ 30,019,914 | $ 31,788,884 |
Gross (loss) profit | 1,179,858 | 634,037 |
Loss from operations | (518,683) | (1,235,765) |
Net loss | $ (1,253,493) | $ (287,913) |
Basic (in Dollars per share) | $ (0.125) | $ (0.003) |
Diluted (in Dollars per share) | $ (0.125) | $ (0.003) |
Third [Member] | ||
Summarized Quarterly Financial Data (Unaudited) (Details) - Schedule of Quarterly Financial Data [Line Items] | ||
Revenues | $ 15,771,560 | $ 31,709,214 |
Gross (loss) profit | (153,223) | 2,783,588 |
Loss from operations | (2,484,513) | (586,953) |
Net loss | $ (1,975,368) | $ (1,887,318) |
Basic (in Dollars per share) | $ (0.2) | $ (0.19) |
Diluted (in Dollars per share) | $ (0.2) | $ (0.19) |
Fourth [Member] | ||
Summarized Quarterly Financial Data (Unaudited) (Details) - Schedule of Quarterly Financial Data [Line Items] | ||
Revenues | $ 20,964,599 | $ 21,372,718 |
Gross (loss) profit | 250,249 | 1,026,126 |
Loss from operations | (3,800,331) | (1,895,373) |
Net loss | $ (3,984,009) | $ (11,907,863) |
Basic (in Dollars per share) | $ (0.4) | $ (1.19) |
Diluted (in Dollars per share) | $ (0.4) | $ (1.19) |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Condensed Financial Information of the Parent Company [Abstract] | ||
Accounting principles | $ 86,641,643 | $ 86,141,643 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Schedule of Condensed Unconsolidated Financial Information - Parent Company [Member] - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 678,347 | $ 1,930,241 |
Prepayments and other current assets | ||
Total current assets | 678,347 | 1,930,241 |
Investment in subsidiaries | 172,382,428 | 184,806,532 |
Total Assets | 173,060,775 | 186,736,773 |
Current Liabilities | ||
Inter-company payable | 4,026,904 | 4,070,160 |
Due to related parties | 727,433 | 727,433 |
Accrued payroll and employee benefit | ||
Accrued liabilities | ||
Income tax payable | ||
Total current liabilities | 4,754,337 | 4,797,593 |
Derivative liability | 54 | 646,283 |
Total liabilities | 4,754,391 | 5,443,876 |
Total stockholders’ equity | 168,306,384 | 181,292,897 |
Total Liabilities and Stockholders’ Equity | $ 173,060,775 | $ 186,736,773 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details) - Schedule of Condensed Statements of Income and Comprehensive Income (Loss) - Parent Company [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Condensed Statements of Income and Comprehensive Income (Loss) [Line Items] | ||
Revenue | ||
Selling, general and administrative expenses | 708,638 | 515,294 |
Loss from Operations | (708,638) | (515,294) |
Equity in earnings of unconsolidated subsidiaries | (9,883,626) | (17,489,197) |
Loss on derivative liability | 646,229 | 1,417,251 |
Other Income (Expense) | ||
Income before Income Taxes | (9,946,035) | (16,587,240) |
Provision for Income Taxes | (15,062) | |
Net Income | (9,946,035) | (16,602,302) |
Other comprehensive income /(loss) | (3,040,994) | (18,010,708) |
Total Comprehensive Income (loss) | $ (12,987,029) | $ (34,613,010) |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details) - Schedule of Cash Flow - Parent Company [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Cash Flow [Line Items] | ||
Net Cash Used in Operating Activities | $ (708,641) | $ (374,357) |
Net Cash Used in Investing Activities | (500,000) | (6,502,000) |
Net Cash Provided by Financing Activities | (43,253) | (329,399) |
Net Increase (Decrease) in Cash and Cash Equivalents | (1,251,894) | (7,205,755) |
Cash and Cash Equivalents - Beginning of Year | 1,930,241 | 9,135,996 |
Cash and Cash Equivalents - End of Year | $ 678,347 | $ 1,930,241 |