v3.25.2
Property and Equipment
 3 Months Ended
Mar. 31, 2025
Property and Equipment [Abstract]  
PROPERTY AND EQUIPMENT

7. PROPERTY AND EQUIPMENT

 

Property and equipment consisted of the following:

  

   As of 
   March 31,   December 31, 
   2025   2024   2023 
   US$   US$   US$ 
Office equipment   3,298    3,279    3,381 
Other machinery and Equipment   17,647    17,546    
-
 
Buildings   27,526,188    
-
    
-
 
Accumulated depreciation   (407,599)   (3,937)   (188)
    27,139,534    16,888    3,193 

 

Depreciation expenses were US$112,597, US$3,809, and US$188 for the three months ended March 31, 2025 and the fiscal years ended December 31, 2024 and 2023, respectively.

 

Phase I of Hongchang Food Industrial Park was complete and reached usable condition in January 2025. The buildings started to depreciate from February 2025.

On February 1, 2025, Hongchang Food entered into a lease contract with Fuqing Yuanchuang Property Management Co., Ltd. to lease out a total of seven buildings in Phase I of Hongchang Food Industrial Park, with the leased area of 46,656.40 square meters from February 1, 2025 to January 31, 2030. As of March 31, 2025, the balance of rental properties was US$27,106,219. Depreciation expenses of US$107,084.00 for the three months ended March 31, 2025 were included in cost of revenue.

 

As of March 31, 2025, the buildings with a carrying value of US$27,106,219 had been pledged as security for bank loans obtained by a related party, Fuqing Xinhongbo Trading Co., Ltd. (“Xinhongbo”).