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Segment Reporting
 6 Months Ended
Jun. 30, 2011
Segment Reporting
(14) Segment Reporting
 
Since March 10, 2010, Baoding Shengde started its operations and thereafter the Company manages its operations through two business operating segments: HBOP, which produces printing paper and corrugating medium paper, and Baoding Shengde, which produces 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 between the operating segments based on gross revenue generated.  The operating segments do share facilities in Xushui County, Baoding City, Hebei, China. All sales were sold to customers located in the PRC.

Summarized financial information for the two reportable segments for the three months ended June 30, 2011 and 2010 is as follows:
 
   
Three Months Ended
June 30, 2011
  
   
HBOP
    
BaodingShengde
    
Not Attributable
to Segments
    
Elimination
Of Inter-segment
    
Enterprise-wide,
Consolidated
  
Revenues
   $ 39,286,977     $ 2,247,409       -       -     $ 41,534,386  
Gross Profit
     8,022,937       786,320       -       -       8,809,257  
Depreciation and amortization
     875,775       228,379       -       -       1,104,154  
Interest income
     8,858       4,138       112       -       13,108  
Interest expense
     136,989       -       -       -       136,989  
Net Income (Loss)
     5,735,351       563,827       (438,228 )     -       5,860,950  
 
   
Three Months Ended
June 30, 2010
  
   
HBOP
    
BaodingShengde
    
Not Attributable
to Segments
    
Elimination
Of Inter-segment
    
Enterprise-wide,
Consolidated
  
Revenues
   $ 37,117,143     $ 1,139,997       -       -     $ 38,257,140  
Gross Profit
     8,601,609       524,863       -       -       9,126,472  
Depreciation and amortization
     861,468       216,869       -       -       1,078,337  
Interest income
     28,563       27,129       6,594       -       62,286  
Interest expense
     169,929       -       -       -       169,929  
Net Income (Loss)
     5,376,323       397,734       (422,202 )     -       5,351,855  

Summarized financial information for the two reportable segments for the six months ended June 30, 2011 and 2010 is as follows:
 
   
Six Months Ended
June 30, 2011
  
   
HBOP
    
BaodingShengde
    
Not Attributable
to Segments
    
Elimination
Of Inter-segment
    
Enterprise-wide,
Consolidated
  
Revenues
   $ 70,354,897     $ 4,404,708       -       -     $ 74,759,605  
Gross Profit
     15,002,549       1,578,416       -       -       16,580,965  
Depreciation and amortization
     1,736,312       452,787       -       -       2,189,099  
Interest income
     11,525       12,574       155       -       24,254  
Interest expense
     267,055       -       -       -       267,055  
Net Income (Loss)
     10,600,193       1,150,385       (1,036,704 )     -       10,713,874  
Total Assets
     105,940,081       34,757,503       469,464       (8,394,984 )     132,772,064  



Orient Paper, Inc
Notes to Condensed Consolidated Financial Statements
(Unaudited)

   
Six Months Ended
June 30, 2010
  
                               
   
HBOP
    
BaodingShengde
    
Not Attributable
to Segments
    
Elimination
Of Inter-segment
    
Enterprise-wide,
Consolidated
  
Revenues
   $ 63,226,125     $ 1,489,203       -       -     $ 64,715,328  
Gross Profit
     13,211,739       755,262       -       -       13,967,001  
Depreciation and amortization
     1,733,895       288,702       -       -       2,022,597  
Interest income
     55,372       27,466       6,636       -       89,474  
Interest expense
     333,246       -       -       -       333,246  
Net Income (Loss)
     8,607,157       566,388       (695,596 )     -       8,477,949  
Total Assets
     76,747,727       37,335,253       1,185,569       (7,497,550 )     107,770,999