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Condensed Financial Information of the Parent Company
 12 Months Ended
Dec. 31, 2013
Condensed Financial Information of Parent Company [Abstract]  
Condensed Financial Information of the Parent Company
(25) 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 $52,666,026 and $50,953,325 as of December 31, 2013 and 2012, respectively.
 
The following represents condensed unconsolidated financial information of the parent company only:
 
CONDENSED BALANCE SHEETS
 
 
 
December 31,
 
 
December 31,
 
 
 
2013
 
 
2012
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
42,592
 
 
$
-
 
Prepayments and other current assets
 
 
69,029
 
 
 
62,797
 
 
 
 
 
 
 
 
 
 
Total current assets
 
 
111,621
 
 
 
62,797
 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
 
 
163,658,397
 
 
 
143,597,251
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
163,770,018
 
 
$
143,660,048
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
                 
Current Liabilities
 
 
 
 
 
 
 
 
Bank overdraft
 
$
-
 
 
$
96
 
Inter-company payable
 
 
2,544,855
 
 
 
736,378
 
Accrued payroll and employee benefit
 
 
51,667
 
 
 
40,000
 
Accrued liabilities
 
 
58,000
 
 
 
58,000
 
Insurance premium payable
 
 
62,348
 
 
 
56,773
 
 
 
 
 
 
 
 
 
 
Total current liabilities
 
 
2,716,870
 
 
 
891,247
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
 
2,716,870
 
 
 
891,247
 
 
 
 
 
 
 
 
 
 
Total stockholders' equity
 
 
161,053,148
 
 
 
142,768,801
 
 
 
 
 
 
 
 
 
 
Total Liabilities and Stockholders' Equity
 
$
163,770,018
 
 
$
143,660,048
 
 
CONDENSED STATEMENTS OF INCOME
 
 
 
Year Ended
 
 
 
December 31,
 
 
 
2013
 
 
2012
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
$
2,227,711
 
 
$
1,397,943
 
 
$
1,841,171
 
Loss from Operations
 
 
(2,227,711
)
 
 
(1,397,943
)
 
 
(1,841,171
)
Equity in earnings of unconsolidated subsidiaries
 
 
15,242,276
 
 
 
16,074,789
 
 
 
23,489,518
 
Other Income (Expense)
 
 
83
 
 
 
(4,183
)
 
 
317
 
Income before Income Taxes
 
 
13,014,648
 
 
 
14,672,663
 
 
 
21,648,664
 
Provision for Income Taxes
 
 
-
 
 
 
-
 
 
 
-
 
Net Income
 
$
13,014,648
 
 
$
14,672,663
 
 
$
21,648,664
 
 
CONDENSED STATEMENTS OF CASH FLOWS
 
 
 
Year Ended
 
 
 
December 31,
 
 
 
2013
 
 
2012
 
 
2011
 
Net Cash Provided by (Used in) Operating Activities
 
$
365,720
 
 
$
546,760
 
 
$
75,537
 
 
 
 
   
 
 
 
 
 
 
 
 
Net Cash Used in Investing Activities
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
   
 
 
 
 
 
 
 
 
Net Cash Used in Financing Activities
 
 
(323,032
)
 
 
(692,242
)
 
 
-
 
 
 
 
   
 
 
 
 
 
 
 
 
Net Increase (Decrease) in Cash and Cash Equivalents
 
 
42,688
 
 
 
(145,482
)
 
 
75,537
 
 
 
 
   
 
 
 
 
 
 
 
 
Cash and Cash Equivalents - Beginning of Period
 
 
(96
)
 
 
145,386
 
 
 
69,849
 
 
 
 
   
 
 
 
 
 
 
 
 
Cash and Cash Equivalents - End of Period
 
$
42,592
 
 
$
(96
)
 
$
145,386
 
 
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.