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Segment Reporting
 9 Months Ended
Sep. 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 
   September 30, 2021 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   Inter-segment   consolidated 
                         
Revenues  $42,123,855   $2,508,611   $2,789,071   $
-
   $(2,333,866)  $45,087,671 
Gross profit   2,026,870    (249,996)   44,662    
-
    
-
    1,821,536 
Depreciation and amortization   1,215,907    1,918,917    432,437    
-
    
-
    3,567,261 
Interest income   8,222    370    3,452    
-
    
-
    12,044 
Interest expense   180,270    17,026    84,374    
-
    
-
    281,670 
Income tax expense(benefit)   320,249    (396,715)   5,078    
-
    
-
    (71,388)
Net income (loss)   956,901    (1,258,593)   (56,897)   1,901,165    
-
    1,542,576 

 

   Three Months Ended 
   September 30, 2020 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   of Inter-segment   consolidated 
                         
Revenues  $30,756,297   $2,380,052   $221,102   $
-
   $
       -
   $33,357,451 
Gross profit   2,888,037    (345,084)   24,598    
-
    
-
    2,567,551 
Depreciation and amortization   1,645,309    2,155,505    4,575    
-
    
-
    3,805,389 
Interest income   6,544    977    1,023    
-
    
-
    8,544 
Interest expense   172,003    7,172    79,263    
-
    
-
    258,438 
Income tax expense(benefit)   578,029    (538,191)   -13,490    
-
    
-
    26,348 
Net income (loss)   1,722,774    (1,394,727)   (67,334)   (781,687)   
-
    (520,974)

 

   Nine Months Ended 
   September 30, 2021 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   of Inter-segment   consolidated 
                         
Revenues  $108,949,261    6,487,027    5,714,288    
     -
    (5,318,563)   115,832,013 
Gross profit   7,523,100    (938,454)   96,915    
-
    
-
    6,681,561 
Depreciation and amortization   3,976,098    6,459,845    1,297,721    
-
    
-
    11,733,664 
Interest income   19,202    1,176    7,718    
-
    
-
    28,096 
Interest expense   537,831    56,376    250,263    
-
    
-
    844,470 
Income tax expense(benefit)   1,355,079    3,582,328    (1,130)   14,717    
-
    4,950,994 
Net income (loss)   3,892,107    (9,219,504)   (210,718)   2,288,587    
-
    (3,249,528)

 

   Nine Months Ended 
   September 30, 2020 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   of Inter-segment   consolidated 
                         
Revenues  $61,630,714    5,766,207    1,066,654                             68,463,575 
Gross profit (loss)   5,859,599    (1,430,934)   527,997              4,956,662 
Depreciation and amortization   4,769,348    6,396,006    136,349              11,301,703 
Interest income   19,638    1,524    2,623              23,785 
Interest expense   505,000    7,172    232,420              744,592 
Income tax expense(benefit)   927,129    (1,586,876)   65,612              (579,418)
Net income (loss)   2,667,923    (4,338,839)   56,764              (3,937,292)

 

   As of September 30, 2021 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   Inter-segment   consolidated 
                               
Total assets  $105,220,080    93,730,035    28,402,322    9,325,881    
-
    236,678,318 

 

   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    22,166    
-
    199,874,474