Plant and equipment, net

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Plant and equipment, net

Note 5 - Plant and equipment, net

	June 30,			December 31,
	2023			2022
	(Unaudited)
Equipment and machinery	$	5,353,165		$	5,633,421
Furniture and office equipment		4,167			3,505
Auto vehicles		23,145			19,783
Leasehold improvement		116,161			122,124
Minus: Accumulated depreciation and amortization		(1,696,540	)		(1,497,885	)
Plant and equipment, net		3,800,098			4,280,948
Construction in progress		4,309,666			2,518,836
Property plant and equipment, net	$	8,109,764		$	6,799,784

Upon the right use of land obtained, RLSP started to build the manufacture plant on the land. The Company capitalized the cost in related to the construction, including the interests related to the borrowings, the utilities occurred in the construction, the amortization of land use of right. On September 17, 2020, RLSP entered into a construction contract with Ningbo Rongsen to build up the manufacture plant including a new production line for which the annual production capacity will be up to four million set of automotive seals. The budget of the project is around $5,420,810 (RMB 35 million) with the project started in April 2021. As of June 30, 2023, the construction has completed around 85% of the overall project and is expected to complete around September 2023.

For the equipment used for manufacturing, the depreciation expense is included as part of manufacturing overhead, while the equipment used for general administrative are included in selling, general and administrative expense on the statements of operations.

For the six months ended June 30, 2023 and 2022, the depreciation and amortization expenses were $246,707 and $293,363, respectively, and $126,679 and $152,837 for the three months ended June 30, 2023 and 2022, respectively.