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Segment Reporting

6 Months Ended

Jun. 30, 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
		June 30, 2019
		Dongfang Paper				Hebei				Dongfang Paper				Not Attributable				Elimination of				Enterprise-wide,
		HB				Tengsheng				Shengde				to Segments				Inter-segment				consolidated
Revenues		$	32,413,830			$	1,206,118			$	-			$	-			$	-			$	33,619,948
Gross profit			3,581,797				(673,668	)			-				-				-				2,908,129
Depreciation and amortization			1,656,695				2,202,698				6				-				-				3,859,399
Interest income			1,468				26				62				-				-				1,556
Interest expense			199,615				-				39,156				-				-				238,771
Income tax expense(benefit)			631,292				(550,448	)			(14,921	)			14,747				-				80,670
Net income (loss)			2,480,493				(1,980,144	)			(33,415	)			(48,261	)			31,397				450,070

		Three Months Ended
		June 30, 2018
		Dongfang Paper				Baoding Shengde				Not Attributable to Segments				Elimination of Inter-segment				Enterprise-wide, consolidated
Revenues		$	33,135,162			$	14,028			$	-			$	-			$	33,149,190
Gross profit			3,018,995				(3,573	)			-				-				3,015,422
Depreciation and amortization			3,492,033				188,215				-				-				3,680,248
Loss from disposal of property, plant and equipment			(113	)			-				-				-				(113	)
Interest income			(17,447	)			103				-				-				(17,344	)
Interest expense			362,158				45,024				-				-				407,182
Income tax expense(benefit)			(491,642	)			(57,380	)			-				-				(549,022	)
Net income (loss)			340,468				(175,962	)			(54,512	)			-				109,994

As of June 30, 2019

Dongfang

Hebei

Baoding

Not Attributable

Elimination of

Enterprise-wide,

Paper

Tengsheng

Shengde

to Segments

Inter-segment

consolidated

Total assets

$

66,340,982

151,086,514

18,109,814

18,600

-

235,555,910

		Six Months Ended
		June 30, 2019
		Dongfang				Hebei				Baoding				Not Attributable				Elimination of				Enterprise-wide,
		Paper				Tengsheng				Shengde				to Segments				Inter-segment				consolidated
Revenues		$	49,864,122			$	1,206,118			$	-			$	-			$	-			$	51,070,240
Gross profit			3,389,331				(673,668	)			-				-				-				2,715,663
Depreciation and amortization			5,586,749				2,202,698				12				-				-				7,789,459
Loss from impairment and disposal of property, plant and equipment			-				-				-				-				-				-
Interest income			60,195				26				153				-				-				60,374
Interest expense			412,491				-				81,549				-				-				494,040
Income tax expense(benefit)			8,988				(550,448	)			(40,412	)			14,747				-				(567,125	)
Net income (loss)			39,665				(1,980,144	)			(72,222	)			(291,221	)			31,397				(2,272,525	)

		Six Months Ended
		June 30, 2018
		Dongfang Paper				Baoding Shengde				Not Attributable to Segments				Elimination of Inter-segment				Enterprise-wide, consolidated
Revenues		$	35,023,356			$	14,028			$	-			$	-			$	35,037,384
Gross profit			2,323,687				(3,573	)			-				-				2,320,114
Depreciation and amortization			7,030,192				380,641				-				-				7,410,833
Loss from disposal of property, plant and equipment			10,263				-				-				-				10,263
Interest income			27,168				251				-				-				27,419
Interest expense			720,948				90,045				-				-				810,993
Income tax expense(benefit)			(964,278	)			(123,713	)			-				-				(1,087,991	)
Net income (loss)			(3,209,922	)			(374,686	)			(391,674	)			-				(3,976,282	)

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

X

- References

No definition available.

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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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