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Segment Reporting
 3 Months Ended
Mar. 31, 2012
Segment Reporting

(15) 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 March 31, 2012 and 2011 is as follows:

 

 

    Three Months Ended
March 31, 2012		  
    HBOP     Baoding
Shengde		     Not Attributable
to Segments		     Elimination
of Inter-segment		     Enterprise-wide,
consolidated		  
                               
Revenues   $ 32,832,860     $ 1,576,139     $ -     $ -     $ 34,408,999  
Gross Profit     7,348,894       404,278       -       -       7,753,172  
Depreciation and amortization     1,722,300       237,002       -       -       1,959,302  
Interest income     2,686       1,994       36       -       4,716  
Interest expense     204,874       -       -       -       204,874  
Income tax expense     1,732,811       93,840       -       -       1,826,651  
Net Income (Loss)     4,892,129       279,754       (479,097 )     (11,095 )     4,681,691  
Total Assets     113,624,700       45,878,586       28,456       (9,662,928 )     149,868,814  

 

   

Three Months Ended

March 31, 2011

  
    HBOP     Baoding
Shengde		     Not Attributable
to Segments		     Elimination
of Inter-segment		     Enterprise-wide,
consolidated		  
                               
Revenues   $ 31,067,920     $ 2,157,299     $ -     $  -     $ 33,225,219  
Gross Profit     6,979,613       792,095       -       -       7,771,708  
Depreciation and amortization     860,536       224,408       -       -       1,084,944  
Interest income     2,668       8,435       43       -       11,146  
Interest expense     130,066       -       -       -       130,066  
Income tax expense     1,678,309       192,708       -       -       1,871,017  
Net Income (Loss)     4,864,842       586,558       (598,476 )     -       4,852,924  

   

    Year Ended
December 31, 2011		  
    HBOP     Baoding
Shengde		     Not Attributable
to Segments		     Elimination
of Inter-segment		     Enterprise-wide,
Consolidated		  
                                         
Total Assets   $ 111,305,277     $ 46,180,744     $ 224,868     $ (12,753,025 )   $ 144,957,864