XML 73 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Reporting
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2012 and 2011 is as follows:

 

    Three Months Ended
June 30, 2012		  
    HBOP     Baoding
Shengde		     Not Attributable
to Segments		     Elimination
of Inter-segment		     Enterprise-wide,
Consolidated		  
                               
Revenues   $ 33,648,597     $ 1,873,075     $ -     $ -     $ 35,521,672  
Gross Profit     5,304,652       481,012       -       -       5,785,664  
Depreciation and amortization     1,854,784       236,663       -       -       2,091,447  
Interest income     4,778       1,197       19       -       5,994  
Interest expense     220,761       -       -       -       220,761  
Income tax expense     1,162,319       111,658       -       -       1,273,977  
Net Income (Loss)     3,470,208       332,831       (195,425 )     3,176       3,610,790  

 

 

    Three Months Ended
June 30, 2011		  
    HBOP     Baoding
Shengde		     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  
Income tax expense     1,913,210       190,930       -       -       2,104,140  
Net Income (Loss)     5,735,351       563,827       (438,228 )     -       5,860,950  

 

 

    Six Months Ended
June 30, 2012		  
    HBOP     Baoding Shengde     Not Attributable
to Segments		     Elimination
Of Inter-segment		     Enterprise-wide,
Consolidated		  
Revenues   $ 66,481,457     $ 3,449,214     $ -     $ -     $ 69,930,671  
Gross Profit     12,653,547       885,289       -       -       13,538,836  
Depreciation and amortization     3,577,083       473,666       -       -       4,050,749  
Interest income     7,464       3,191       55       -       10,710  
Interest expense     425,635       -       -       -       425,635  
Income tax expense     2,895,130       205,498       -       -       3,100,628  
Net Income (Loss)     8,362,337       612,585       (674,522 )     (7,919 )     8,292,481  
Total Assets     115,010,790       44,924,636       281,096       (8,398,988 )     151,817,534  

 

 

    Six Months Ended
June 30, 2011		  
    HBOP     Baoding
Shengde		     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  
Income tax expense     3,591,519       383,638       -       -       3,975,157  
Net Income (Loss)     10,600,193       1,150,385       (1,036,704 )     -       10,713,874  
   

 

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