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Segment Reporting
 9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Segment Reporting

(18) 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 offset 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 Province, 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, 2015 
  Orient Paper  Orient Paper  Not Attributable  Elimination
of Inter-		  Enterprise-wide, 
  HB  Shengde  to Segments  segment  consolidated 
                
Revenues $32,255,518  $151,359  $-  $-  $32,406,877 
Gross Profit  6,557,624   (141,063)  -   -   6,416,561 
Depreciation and amortization  4,889,952   79,389   -   -   4,969,341 
Interest income  9,650   335   -   -   9,985 
Interest expense  566,122   -   -   -   566,122 
Income tax expense  611,163   (40,995)  -   -   570,168 
Net Income (Loss)  1,865,481   (135,442)  (44,142)  -   1,685,897 

 

  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 

  

  Nine Months Ended 
  September 30, 2015 
  Orient Paper  Orient Paper  Not Attributable  Elimination of Inter-  Enterprise-wide, 
  HB  Shengde  to Segments  segment  consolidated 
                
Revenues $100,017,223  $177,140  $-  $-  $100,194,363 
Gross Profit  22,023,737   (136,929)  -   -   21,886,808 
Depreciation and amortization  9,477,134   584,424   -   -   10,061,558 
Interest income  63,899   1,285   -   -   65,184 
Interest expense  2,350,233   -   -   -   2,350,233 
Income tax expense  3,535,575   (183,411)  -   -   3,352,164 
Net Income (Loss)  10,648,898   (616,560)  (650,422)  -   9,381,916 
Total Assets  196,595,894   34,713,063   152,424   -   231,461,381 

 

  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 

 

  Year Ended December 31, 2014 
  Orient Paper  Orient Paper  Not Attributable  Elimination of Inter-  Enterprise-wide, 
  HB  Shengde  to Segments  segment  consolidated 
                     
Total Assets $200,764,663  $38,914,243  $88,679  $-  $239,767,585