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Condensed Financial Information of the Parent Company
 12 Months Ended
Dec. 31, 2011
Condensed Financial Information of the Parent Company

(21) Condensed Financial Information of the Parent Company

 

The condensed financial statements of Orient Paper Inc. (“ONP”, the “parent company”) have been prepared in accordance with accounting principles generally accepted in the United States of America. Under the PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer certain of their net assets to the parent company in the form of dividend payments, loans or advances. The amounts restricted include paid-in capital, capital surplus and statutory reserves, as determined pursuant to PRC generally accepted accounting principles, totaling $50,502,923 and $48,326,851 as of December 31, 2011 and 2010, respectively.

 

 

The following represents condensed unconsolidated financial information of the parent company only:

 

CONDENSED BALANCE SHEETS

 

    December 31,     December 31,  
    2011     2010  
ASSETS          
                 
Current Assets                
Cash and cash equivalents   $ 145,386     $ 69,849  
Prepayments and other current assets     79,482       25,874  
Due from inter-companies     4,000,000       4,000,000  
                 
Total current assets     4,224,868       4,095,723  
                 
Investment in subsidiaries     126,637,592       98,840,998  
                 
Total Assets   $ 130,862,460     $ 102,936,721  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current Liabilities                
Inter-company payable   $ 3,008,524     $ 1,057,596  
Loan from shareholder     200,000       -  
Accrued expenses     58,000       290,000  
Accured payroll and benefit     70,493       47,050  
                 
Total current liabilities     3,337,017       1,394,645  
                 
Total liabilities     3,337,017       1,394,645  
                 
Total stockholders' equity     127,525,443       101,542,076  
                 
Total Liabilities and Stockholders' Equity   $ 130,862,460     $ 102,936,721  

 

CONDENSED STATEMENTS OF INCOME

 

    Year Ended  
    December 31,  
    2011     2010     2009  
                   
Operating expenses                        
Selling, General and Administrative Expenses   $ 1,841,171     $ 2,304,222     $ 1,235,963  
Income (Loss) from Operations     (1,841,171 )     (2,304,222 )     (1,235,963 )
Equity in earnings of unconsolidated subsidiaries     23,489,518       17,848,627       13,956,171  
Other Income (Expense):     317       7,131       -  
Income (Loss) before Income Taxes     21,648,664       15,551,536       12,720,208  
Provision for Income Taxes     -       -       -  
Net Income   $ 21,648,664     $ 15,551,536     $ 12,720,208  

 

 

CONDENSED STATEMENTS OF CASH FLOWS

    Year Ended  
    December 31,  
    2011     2010     2009  
Net Cash Provided by/ (Used in) Operating Activities   $ 75,537     $ (1,491,808 )   $ (675,276 )
                         
Net Cash Used in Investing Activities     -       (25,000,000 )     (14,509,069 )
                         
Net Cash Provided by Financing Activities     -       26,561,657       15,184,345  
                         
Net Increase in Cash and Cash Equivalents     75,537       69,849       -  
                         
Cash and Cash Equivalents - Beginning of Period     69,849       -       -  
                         
Cash and Cash Equivalents - End of Period   $ 145,386     $ 69,849     $ -  

 

BASIS OF PRESENTATION

 

The condensed financial information has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company has used equity method to account for its investments in the subsidiaries.