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Segment Reporting
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting

(18) 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 County, 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 
   June 30, 2021 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   Inter-segment   consolidated 
                         
Revenues  $43,997,853   $2,727,000   $2,794,759   $
-
   $(2,984,697)  $46,534,915 
Gross profit   3,233,548    (232,251)   27,722    
-
    
-
    3,029,019 
Depreciation and amortization   927,090    2,283,861    862,965    
-
    
-
    4,073,916 
Interest income   8,614    600    2,505    
-
    
-
    11,719 
Interest expense   181,175    18,932    83,792    
-
    
-
    283,899 
Income tax expense (benefit)   617,975    4,494,672    (4,777)   14,717    
-
    5,122,587 
Net income (loss)   1,847,997    (6,482,307)   (85,776)   4,266,838    
-
    (453,248)

 

   Three Months Ended 
   June 30, 2020 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   Inter-segment   consolidated 
                         
Revenues  $23,136,915   $2,379,806   $845,552   $
-
   $
        -
   $26,362,273 
Gross profit   2,429,407    (373,977)   503,399    
-
    
-
    2,558,829 
Depreciation and amortization   1,617,412    2,105,130    -902    
-
    
-
    3,721,640 
Interest income   7,577    464    1,410    
-
    
-
    9,451 
Interest expense   165,416    -    76,020    
-
    
-
    241,436 
Income tax expense (benefit)   357,463    (525,769)   88,865    
-
    
-
    (79,441)
Net income (loss)   1,441,234    (1,349,174)   324,495    (1,396,586)   
-
    (980,031)

 

   Six Months Ended 
   June 30, 2021 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   Inter-segment   consolidated 
                         
Revenues  $66,825,406    3,978,416    2,925,217    
-
    (2,984,697)   70,744,342 
Gross profit   5,496,229    (688,458)   52,253    
-
    
-
    4,860,024 
Depreciation and amortization   2,760,191    4,540,928    865,284    
-
    
-
    8,166,403 
Interest income   10,980    806    4,266    
-
    
-
    16,052 
Interest expense   357,561    39,350    165,889    
-
    
-
    562,800 
Income tax expense (benefit)   1,034,830    3,979,043    (6,208)   14,717    
-
    5,022,382 
Net income (loss)   2,935,206    (7,960,911)   (153,821)   387,422    
-
    (4,792,104)

  

   Six Months Ended 
   June 30, 2020 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   Inter-segment   consolidated 
Revenues  $30,874,417   $3,386,155   $845,552   $    $             35,106,124 
Gross profit (loss)   2,971,562    (1,085,851)   503,399              2,389,110 
Depreciation and amortization   3,124,039    4,240,501    131,774              7,496,314 
Interest income   13,094    547    1,600              15,241 
Interest expense   332,997    
-
    153,157              486,154 
Income tax expense(benefit)   349,100    (1,048,685)   79,102    14,717         (605,766)
Net income (loss)   945,149    (2,944,112)   124,098              (3,416,318)

 

   As of June 30, 2021 
   Dongfang   Hebei   Baoding   Not Attributable  Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments  Inter-segment   consolidated 
                             
Total assets  $97,994,697    95,882,356    35,367,009   9,377,106   
         -
    238,621,168 

 

   As of December 31, 2020 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   Inter-segment   consolidated 
                         
Total assets  $79,206,447    102,056,291    18,589,570    
            -
    
         -
    199,874,474