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Segment Reporting

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment Reporting

(17) Segment Reporting

Since March 10, 2010, Baoding Shengde started its operations and thereafter the Company manages its operations through two business operating segments: Dongfang Paper, which produces offset 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 District, 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, 2018
		Dongfang				Baoding				Not Attributable				Elimination of				Enterprise-wide,
		Paper				Shengde				to Segments				Inter-segment				consolidated
Revenues		$	26,723,863			$	(206	)		$	-			$	-			$	26,723,657
Gross profit			1,259,143				200				-				-				1,259,343
Depreciation and amortization			3,285,570				177,133				-				-				3,462,703
Loss from disposal of property, plant and equipment			(237	)			-				-				-				(237	)
Interest income			5,155				67				-				-				5,222
Interest expense			329,889				42,387				-				-				372,276
Income tax expense(benefit)			(483,685	)			(54,546	)			-				-				(538,231	)
Net income (loss)			(1,312,465	)			(167,199	)			74,702				-				(1,404,962	)

		Three Months Ended
		September 30, 2017
		Dongfang				Baoding				Not Attributable				Elimination of				Enterprise-wide,
		Paper				Shengde				to Segments				Inter-segment				consolidated
Revenues		$	33,507,053			$	-			$	-			$	-			$	33,507,053
Gross profit			7,221,288				-				-				-				7,221,288
Depreciation and amortization			3,497,635				231,367				-				-				3,729,002
Gain from disposal of property, plant and equipment			(1,653,039	)			-				-				-				(1,653,039	)
Interest income			3,548				1,955				-				-				5,503
Interest expense			604,351				43,612				-				-				647,963
Income tax expense(benefit)			579,232				(74,067	)			-				-				505,165
Net income (loss)			1,916,821				(225,778	)			(118,708	)			-				1,572,335

		Nine Months Ended
		September 30, 2018
		Dongfang				Baoding				Not Attributable				Elimination of				Enterprise-wide,
		Paper				Shengde				to Segments				Inter-segment				consolidated
Revenues		$	61,747,219			$	13,822			$	-			$	-			$	61,761,041
Gross profit			3,582,830				(3,373	)			-				-				3,579,457
Depreciation and amortization			10,315,762				557,774				-				-				10,873,536
Loss from disposal of property, plant and equipment			10,026				-				-				-				10,026
Interest income			32,323				318				-				-				32,641
Interest expense			1,050,837				132,432				-				-				1,183,269
Income tax expense(benefit)			(1,447,963	)			(178,259	)			-				-				(1,626,222	)
Net income (loss)			(4,522,387	)			(541,885	)			(316,972	)			-				(5,381,244	)

As of September 30, 2018

Dongfang

Baoding

Not Attributable to

Elimination of

Enterprise-wide,

Paper

Shengde

Segments

Inter-segment

consolidated

Total assets

$

177,647,537

23,235,074

23,813

-

200,906,424

		Nine Months Ended
		September 30, 2017
		Dongfang				Baoding				Not Attributable				Elimination of				Enterprise-wide,
		Paper				Shengde				to Segments				Inter-segment				consolidated
Revenues		$	81,584,395			$	-			$	-			$	-			$	81,584,395
Gross profit (loss)			16,339,874				-				-				-				16,339,874
Depreciation and amortization			10,247,936				680,566				-				-				10,928,502
Gain from disposal of property, plant and equipment			(1,665,140	)			-				-				-				(1,665,140	)
Interest income			25,767				3,492				-				-				29,259
Interest expense			1,953,379				70,198				-				-				2,023,577
Income tax expense(benefit)			1,402,558				(296,630	)			-				-				1,105,928
Net income (loss)			4,350,831				(516,705	)			(538,005	)			-				3,296,121

		As of December 31, 2017
		Dongfang Paper				Baoding Shengde				Not Attributable to Segments				Elimination of Inter-segment				Enterprise-wide, consolidated
Total assets		$	192,620,887				26,363,435				5,159				-				218,989,481

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- References

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- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

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