XML 39 R22.htm IDEA: XBRL DOCUMENT v3.19.1
Segment Reporting
 3 Months Ended
Mar. 31, 2019
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 
   March 31, 2019 
   Dongfang   Baoding   Not Attributable   Elimination of    Enterprise-wide, 
   Paper   Shengde   to Segments   Inter-segment   consolidated 
                     
Revenues  $17,450,292   $-   $-   $  -   $17,450,292 
Gross profit   (192,466)   -    -    -    (192,466)
Depreciation and amortization   3,930,054    6    -    -    3,930,060 
Interest income   58,727    91    -    -    58,818 
Interest expense   212,876    42,393    -    -    255,269 
Income tax expense(benefit)   (622,304)   (25,491)   -    -    (647,795)
Net income (loss)   (2,440,828)   (38,807)   (242,960)   -    (2,722,595)

 

   Three Months Ended 
   March 31, 2018 
   Dongfang   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Shengde   to Segments   Inter-segment   consolidated 
                     
Revenues  $1,888,194   $-   $-   $      -   $1,888,194 
Gross profit   (695,308)   -    -    -    (695,308)
Depreciation and amortization   3,538,159    192,426    -    -    3,730,585 
Loss from disposal of property, plant and equipment   10,376    -    -    -    10,376 
Interest income   44,615    148    -    -    44,763 
Interest expense   358,790    45,021    -    -    403,811 
Income tax expense(benefit)   (472,636)   (66,333)   -    -    (538,969)
Net income (loss)   (3,550,390)   (198,724)   (337,162)   -    (4,086,276)

 

   As of March 31, 2019 
   Dongfang   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Shengde   to Segments   Inter-segment   consolidated 
                     
Total assets  $175,578,609    18,950,298    28,397            -    194,557,304 

 

   As of December 31, 2018 
   Dongfang   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Shengde   to Segments   Inter-segment   consolidated 
                     
Total assets  $183,987,100    19,068,788    20,122           -    203,076,010