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Segment Reporting

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Reporting

(16) Segment Reporting

Since March 10, 2010, Baoding Shengde started its operations and thereafter the Company manages its operations through three business operating segments: Dongfang Paper, which produces offset printing paper and corrugating medium paper, Hebei Tengsheng, which produces tissue 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 three reportable segments is as follows:  

		Three Months Ended
		September 30, 2019
		Dongfang				Hebei				Baoding				Not Attributable				Elimination of				Enterprise-wide,
		Paper				Tengsheng				Shengde				to Segments				Inter-segment				consolidated
Revenues		$	31,364,795			$	1,573,122			$	-			$	-			$	-			$	32,937,917
Gross profit			5,978,125				(603,393	)			-				-				-				5,374,732
Depreciation and amortization			1,606,856				2,151,329				6				-				-				3,758,191
Interest income			1,317				47				49				-				-				1,413
Interest expense			194,992				-				41,995				-				-				236,987
Income tax expense(benefit)			1,324,462				(537,402	)			(14,155	)			-				-				772,905
Net income (loss)			3,968,168				(1,611,552	)			(31,487	)			13,777				(879	)			2,338,027

		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	)

As of September 30, 2019

Dongfang

Hebei

Baoding

Not Attributable

Elimination of

Enterprise-wide,

Paper

Tengsheng

Shengde

to Segments

Inter-segment

consolidated

Total assets

$

68,256,689

145,866,818

17,274,385

6,753

-

231,404,645

		Nine Months Ended
		September 30, 2019
		Dongfang				Hebei				Baoding				Not Attributable				Elimination of				Enterprise-wide,
		Paper				Tengsheng				Shengde				to Segments				Inter-segment				consolidated
Revenues		$	81,228,917			$	2,779,240			$	-			$	-			$	-			$	84,008,157
Gross profit			9,367,456				(1,277,061	)			-				-				-				8,090,395
Depreciation and amortization			7,193,605				4,354,027				18				-				-				11,547,650
Loss from impairment and disposal of property, plant and equipment			-				-				-				-				-				-
Interest income			61,512				73				202				-				-				61,787
Interest expense			607,483				-				123,544				-				-				731,027
Income tax expense(benefit)			1,333,450				(1,087,850	)			(54,567	)			14,747				-				205,780
Net income (loss)			4,007,833				(3,591,696	)			(103,709	)			(277,444	)			30,518				65,502

		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 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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