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Segment Reporting
 9 Months Ended
Sep. 30, 2016
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, 2016  
    Orient Paper     Orient Paper     Not Attributable     Elimination
of Inter-		     Enterprise-
wide,		  
    HB     Shengde     to Segments     segment     consolidated  
                               
Revenues   $ 37,397,395     $ 64,671     $ -     $ -     $ 37,462,066  
Gross profit (loss)     7,347,908       (17,065 )     -       -       7,330,843  
Depreciation and amortization     3,485,154       230,868       -       -       3,716,022  
Interest income     14,568       264       -       -       14,832  
Interest expense     677,576       -       -       -       677,576  
Income tax expense(benefit)     1,098,270       (64,411 )     -       -       1,033,859  
Net income (loss)     3,313,671       (196,558 )     (82,571 )          -       3,034,542  

 

    Three Months Ended September 30, 2015  
    Orient Paper     Orient Paper     Not Attributable     Elimination of     Enterprise-wide,  
    HB     Shengde     to Segments     Inter-segment     consolidated  
                               
Revenues   $ 32,255,518     $ 151,359     $ -     $ -     $ 32,406,877  
Gross profit (loss)     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(benefit)     611,163       (40,995 )     -       -       570,168  
Net income (loss)     1,865,481       (135,442 )     (44,142 )          -       1,685,897  

 

    Nine Months Ended September 30, 2016  
    Orient Paper     Orient Paper     Not Attributable     Elimination of     Enterprise-wide,  
    HB     Shengde     to Segments     Inter-segment     consolidated  
                               
Revenues   $ 102,703,977     $ 664,314     $ -     $ -     $ 103,368,291  
Gross profit (loss)     18,376,724       (390,243 )     -       -       17,986,481  
Depreciation and amortization     10,966,088       702,888       -       -       11,668,976  
Interest income     94,430       796       -       -       95,226  
Interest expense     2,094,448       -       -       -       2,094,448  
Income tax expense(benefit)     2,248,946       (171,120 )     -       -       2,077,826  
Net income (loss)     6,747,378       (559,747 )     (1,945,380 )          -       4,242,251  

 

    As of September 30, 2016  
    Orient Paper     Orient Paper     Not Attributable   Elimination of     Enterprise-wide,  
    HB     Shengde     to Segments   Inter-segment     consolidated  
                                     
Total assets     189,018,068       30,502,145     7,246          -       219,527,459  

  

    Nine Months Ended September 30, 2015  
    Orient Paper     Orient Paper     Not Attributable     Elimination of     Enterprise-wide,  
    HB     Shengde     to Segments     Inter-segment     consolidated  
                               
Revenues   $ 100,017,223     $ 177,140     $ -     $ -     $ 100,194,363  
Gross profit (loss)     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(benefit)     3,535,575       (183,411 )     -       -       3,352,164  
Net income (loss)     10,648,898       (616,560 )     (650,422 )          -       9,381,916  

 

    As of December 31, 2015  
    Orient Paper HB     Orient Paper Shengde     Not Attributable to Segments    

Elimination of

Inter-segment

     Enterprise-wide, consolidated  
                                         
Total assets   $ 205,117,348     $ 33,500,731     $ 8,840     $      -     $ 238,626,919