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Segment Reporting
 9 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
Segment Reporting

(16) 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 nine months ended September 30, 2012 and 2011 is as follows:

 

   

Three Months Ended

September 30, 2012

  
    HBOP    

Baoding

Shengde

    

Not Attributable

to Segments

    

Elimination

of Inter-segment

    

Enterprise-wide,

Consolidated

  
                               
Revenues   $ 35,795,860     $ 1,855,494     $ -     $ -     $ 37,651,354  
Gross Profit     6,359,616       460,437       -       -       6,820,053  
Depreciation and amortization     1,495,447       676,404       -       -       2,171,851  
Interest income     6,434       557       23       -       7,014  
Interest expense     216,065       -       3,198       -       219,263  
Income tax expense     1,461,159       108,939       -       -       1,570,098  
Net Income (Loss)     4,385,536       301,474       (326,937 )     18,998       4,379,071  

 

   

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  
Income tax expense     1,734,687       150,222       -       -       1,884,909  
Net Income (Loss)     5,489,718       431,648       (489,606 )     -       5,431,760  
                                               

 

   

Nine Months Ended

September 30, 2012

  
    HBOP     Baoding Shengde    

Not Attributable

to Segments

    

Elimination

Of Inter-segment

    

Enterprise-wide,

Consolidated

  
Revenues   $ 102,277,317     $ 5,304,708     $ -     $ -     $ 107,582,025  
Gross Profit     19,013,163       1,345,726       -       -       20,358,889  
Depreciation and amortization     5,072,530       1,150,070       -       -       6,222,600  
Interest income     13,898       3,748       78       -       17,724  
Interest expense     641,700       -       3,198       -       644,898  
Income tax expense     4,356,289       314,437       -       -       4,670,726  
Net Income (Loss)     12,747,873       914,059       (1,001,459 )     11,079       12,671,552  
Total Assets     113,620,824       44,231,757       167,578       -       158,020,159  
   

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  
Income tax expense     5,326,206       533,860       -       -       5,860,066  
Net Income (Loss)     16,097,568       1,574,376       (1,526,310 )     -       16,145,634  
   

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