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Segment Reporting
9 Months Ended
Sep. 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 September 30, 2011 and 2010 is as follows:
 
   
Three Months Ended
September 30, 2011
  
   
HBOP
    
Baoding Shengde
    
Not Attributable
to Segments
    
Elimination
Of Inter-segment
    
Enterprise-wide,
Consolidated
  
Revenues
  
$
35,103,908
    
$
1,970,851
      
-
      
-
    
$
37,074,759
  
Gross Profit
    
7,360,928
      
633,207
      
-
      
-
      
7,994,135
  
Depreciation and amortization
    
890,754
      
231,765
      
-
      
-
      
1,122,519
  
Interest income
    
5,902
      
1,055
      
91
      
-
      
7,048
  
Interest expense
    
222,742
      
-
      
-
      
-
      
222,742
  
Net Income (Loss)
    
5,489,718
      
431,648
      
(489,606
)
    
-
      
5,431,760
  
 
 
   
Three Months Ended
September 30, 2010
  
   
HBOP
    
Baoding Shengde
    
Not Attributable
to Segments
    
Elimination
Of Inter-segment
    
Enterprise-wide,
Consolidated
  
Revenues
  
$
21,714,578
    
$
1,291,736
      
-
      
-
    
$
23,006,314
  
Gross Profit
    
3,359,532
      
462,153
      
-
      
-
      
3,821,685
  
Depreciation and amortization
    
852,706
      
225,162
      
-
      
-
      
1,077,868
  
Interest income
    
11,406
      
29,528
      
450
      
-
      
41,384
  
Interest expense
    
136,325
      
-
      
-
      
-
      
136,325
  
Net Income (Loss)
    
2,231,180
      
347,072
      
(814,024
)
    
-
      
1,764,228
  

Summarized financial information for the two reportable segments for the nine months ended September 30, 2011 and 2010 is as follows:

   
Nine Months Ended
September 30, 2011
  
   
HBOP
    
Baoding Shengde
    
Not Attributable
to Segments
    
Elimination
Of Inter-segment
    
Enterprise-wide,
Consolidated
  
Revenues
  
$
105,458,805
    
$
6,375,559
      
-
      
-
    
$
111,834,364
  
Gross Profit
    
22,363,477
      
2,211,623
      
-
      
-
      
24,575,100
  
Depreciation and amortization
    
2,627,066
      
684,552
      
-
      
-
      
3,311,618
  
Interest income
    
17,428
      
13,629
      
245
      
-
      
31,302
  
Interest expense
    
489,797
      
-
      
-
      
-
      
489,797
  
Net Income (Loss)
    
16,097,568
      
1,574,376
      
(1,526,310
)
    
-
      
16,145,634
  
Total Assets
    
110,802,865
      
35,533,867
      
367,335
      
(11,127,743
)
    
135,576,324
  

   
Nine Months Ended
September 30, 2010
  
                               
   
HBOP
    
Baoding Shengde
    
Not Attributable
to Segments
    
Elimination
Of Inter-segment
    
Enterprise-wide,
Consolidated
  
Revenues
  
$
84,940,702
    
$
2,780,940
      
-
      
-
    
$
87,721,642
  
Gross Profit
    
16,571,269
      
1,217,417
      
-
      
-
      
17,788,686
  
Depreciation and amortization
    
2,586,602
      
513,863
      
-
      
-
      
3,100,465
  
Interest income
    
66,778
      
56,993
      
7,087
      
-
      
130,858
  
Interest expense
    
469,571
      
-
      
-
      
-
      
469,571
  
Net Income (Loss)
    
10,838,338
      
913,460
      
(1,509,621
)
    
-
      
10,242,177
  

   
As of 
December 31, 2010
  
                               
   
HBOP
    
Baoding Shengde
    
Not Attributable
to Segments
    
Elimination
Of Inter-segment
    
Enterprise-wide,
Consolidated
  
Total Assets
  
$
91,883,320
    
$
32,931,982
      
95,724
      
(9,404,685)
    
$
115,506,341