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Segment Reporting
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting

(19) Segment Reporting

 

Since March 10, 2010, Orient Paper Shengde started its operations and thereafter the Company manages its operations through two business operating segments: Orient Paper HB, which produces printing paper and corrugating medium paper, and Orient Paper 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 is as follows: 

 

  Three Months Ended 
  September 30, 2014 
   Orient Paper   Orient Paper   Not Attributable   Elimination of Inter-   Enterprise-wide, 
   HB   Shengde   to Segments   segment   consolidated 
                     
Revenues $40,183,579  $570,626  $-  $-  $40,754,205 
Gross Profit  6,401,583   9,265   -   -   6,410,848 
Depreciation and amortization  1,308,580   701,550   -   -   2,010,130 
Interest income  33,752   1,338   -   -   35,090 
Interest expense  344,191   -   -   -   344,191 
Income tax expense  1,227,949   19,307   -   -   1,247,256 
Net Income (Loss)  3,801,421   (39,917)  (388,560)  -   3,372,944 
                     

 

  Three Months Ended 
  September 30, 2013 
   Orient Paper   Orient Paper   Not Attributable   Elimination of Inter-   Enterprise-wide, 
   HB   Shengde   to Segments   segment   consolidated 
                     
Revenues $36,097,505  $1,588,609  $-  $-  $37,686,114 
Gross Profit  8,029,435   406,379   -   -   8,435,814 
Depreciation and amortization  1,364,219   695,051   -   -   2,059,270 
Interest income  22,871   1,265   23   -   24,159 
Interest expense  242,740   -   1,645   -   244,385 
Income tax expense  1,879,452   99,651   -   -   1,979,103 
Net Income (Loss)  5,649,511   270,450   (385,117)  -   5,534,844 

       

  Nine Months Ended 
  September 30, 2014 
   Orient Paper   Orient Paper   Not Attributable   Elimination of Inter-   Enterprise-wide, 
   HB   Shengde   to Segments   segment   consolidated 
                     
Revenues $101,402,582  $2,941,752  $-  $-  $104,344,334 
Gross Profit  16,637,730   564,961   -   -   17,202,691 
Depreciation and amortization  3,764,983   2,112,841   -   -   5,877,824 
Interest income  77,043   2,895   -   -   79,938 
Interest expense  888,028   -   -   -   888,028 
Income tax expense  3,378,702   157,791   -   -   3,536,493 
Net Income (Loss)  10,266,271   310,373   (1,098,298)  -   9,478,346 
Total Assets 186,295,286  42,841,370  2,412,866  -  231,549,522 

 

  Nine Months Ended 
  September 30, 2013 
   Orient Paper   Orient Paper   Not Attributable   Elimination of Inter-   Enterprise-wide, 
   HB   Shengde   to Segments   segment   consolidated 
                     
Revenues $86,982,167  $3,489,115  $-  $-  $90,471,282 
Gross Profit  15,536,788   627,658   -   -   16,164,446 
Depreciation and amortization  3,914,115   2,066,605   -   -   5,980,720 
Interest income  76,599   2,300   49   -   78,948 
Interest expense  719,593   -   3,510   -   723,103 
Income tax expense  3,397,122   153,771   -   -   3,550,893 
Net Income (Loss)  10,247,650   371,382   (1,124,997)  -   9,494,035 

 

  Year Ended December 31, 2013 
   Orient Paper   Orient Paper  Not Attributable  Elimination of Inter-   Enterprise-wide, 
   HB   Shengde  to Segments  segment   consolidated 
                   
Total Assets $168,149,877  $41,264,704  $111,621 $-  $209,526,202