Schedule of Subsidiaries and Variable Interest Entities |
As of March 31, 2025 and December 31, 2024, details of the Company’s
subsidiaries and variable interest entities are as follows:
Name | | Date of
Incorporation or
Establishment | | Place of
Incorporation or Establishment | | Percentage of
Ownership | | Principal
Activity | Subsidiary: | | | | | | | | | Dongfang Holding | | November 13, 2006 | | BVI | | 100% | | Inactive investment holding | Shengde Holdings | | February 25, 2009 | | State of Nevada | | 100% | | Investment holding | Baoding Shengde | | June 1, 2009 | | PRC | | 100% | | Paper production and distribution | Qianrong | | July 15, 2021 | | PRC | | 100% | | New material technology service | | | | | | | | | | Variable interest entity (“VIE”): | | | | | | | | | Dongfang Paper | | March 10, 1996 | | PRC | | Control* | | Paper production and distribution | Tengsheng Paper | | April 07, 2011 | | PRC | | Control** | | Paper production and distribution |
* | Dongfang Paper is treated as a 100% controlled variable interest entity of the Company. |
** | Tengsheng Paper is 100% subsidiary of Dongfang Paper. |
|
Schedule of Aggregate Carrying Value of Dongfang Paper’s Assets and Liabilities |
The aggregate carrying value of Dongfang Paper’s assets and liabilities (after elimination
of intercompany transactions and balances) in the Company’s condensed consolidated balance sheets as of March 31, 2025 and December
31, 2024 are as follows:
| |
March 31, | | |
December 31, | |
| |
2025 | | |
2024 | |
| |
| | |
| |
ASSETS | |
| | |
| |
| |
| | |
| |
Current Assets | |
| | |
| |
Cash and bank balances | |
$ | 3,990,161 | | |
$ | 5,850,910 | |
Restricted cash | |
| 1,035,932 | | |
| 1,034,203 | |
Accounts receivable | |
| 2,127,629 | | |
| 287,576 | |
Inventories | |
| 4,616,616 | | |
| 2,351,876 | |
Prepayments and other current assets | |
| 16,743,197 | | |
| 17,922,229 | |
Due from related parties | |
| | | |
| - | |
| |
| | | |
| | |
Total current assets | |
| 28,513,535 | | |
| 27,446,794 | |
| |
| | | |
| | |
Prepayment on property, plant and equipment | |
| 8,359 | | |
| - | |
Operating lease right-of-use assets, net | |
| 396,418 | | |
| 421,868 | |
Property, plant, and equipment, net | |
| 139,747,915 | | |
| 142,702,663 | |
Deferred tax asset non-current | |
| - | | |
| - | |
| |
| | | |
| | |
Total Assets | |
$ | 168,666,227 | | |
$ | 170,571,325 | |
| |
| | | |
| | |
LIABILITIES | |
| | | |
| | |
| |
| | | |
| | |
Current Liabilities | |
| | | |
| | |
Short-term bank loans | |
$ | 585,105 | | |
$ | - | |
Current portion of long-term loans | |
| 3,564,961 | | |
| 3,559,902 | |
Lease liability | |
| 108,604 | | |
| 245,604 | |
Advance from customers | |
| 11,790 | | |
| 11,773 | |
Due to related parties | |
| 26,281 | | |
| 26,244 | |
Accrued payroll and employee benefits | |
| 286,399 | | |
| 172,239 | |
Other payables and accrued liabilities | |
| 11,678,231 | | |
| 11,536,047 | |
Income taxes payable | |
| - | | |
| 80,905 | |
| |
| | | |
| | |
Total current liabilities | |
| 16,261,371 | | |
| 15,632,714 | |
| |
| | | |
| | |
Long-term loans | |
| 1,114,486 | | |
| 1,112,904 | |
Lease liability - non-current | |
| 377,603 | | |
| 231,147 | |
| |
| | | |
| | |
Total liabilities | |
$ | 17,753,460 | | |
$ | 16,976,765 | |
|