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Segment Reporting
 12 Months Ended
Dec. 31, 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 two reportable segments is as follows:

 

   Year Ended 
   December 31, 2021 
   Dongfang Paper   Hebei Tengsheng   Baoding Shengde   Not Attributable to Segments   Elimination of Inter-segment   Enterprise-wide, consolidated 
                         
Revenues  $151,574,318    8,765,380    5,878,568    
-
    (5,336,546)   160,881,720 
Gross profit   12,138,849    (1,255,190)   133,900    
-
    
-
    11,017,559 
Depreciation and amortization   5,213,598    8,408,713    1,736,141    
-
    
-
    15,358,452 
Interest income   24,732    1,703    12,331    
-
    
-
    38,766 
Interest expense   717,265    71,798    335,639    
-
    
-
    1,124,702 
Income tax expense(benefit)   2,348,694    3,197,629    (14,086)   14,717    
-
    5,546,954 
Net income (loss)   6,744,417    (10,620,350)   (322,525)   5,103,993    
-
    905,535 

 

    Year Ended  
    December 31, 2020  
   Dongfang Paper   Hebei Tengsheng   Baoding Shengde   Not Attributable to Segments   Elimination of Inter-segment   Enterprise-wide, consolidated 
                       
Revenues   $  91,426,671       8,414,654       1,101,944      
-
      
         -
       100,943,269  
Gross profit     7,000,150       (1,828,214 )     530,049      
-
      
-
       5,701,985  
Depreciation and amortization     7,039,687       8,613,750       140,417      
-
      
-
       15,793,854  
Interest income     27,046       1,770       3,217      
-
      
-
       32,033  
Interest expense     683,605       28,083       314,824      
-
      
-
       1,026,512  
Income tax expense(benefit)     967,408       (2,140,532 )     56,550       14,717      
-
       (1,101,857 )
Net income (loss)     2,849,742       (5,837,914 )     (42,250 )     (2,523,580 )    
-
       (5,554,002 )

 

    As of December 31, 2021  
    Dongfang     Hebei     Baoding     Not Attributable   Elimination of     Enterprise-wide,  
    Paper     Tengsheng     Shengde     to Segments   Inter-segment     consolidated  
                                             
Total assets   $  109,369,167       93,841,874       29,181,392     9,142,769    
       -
       241,535,202  

 

   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