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Segment Reporting
 6 Months Ended
Jun. 30, 2022
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, 2022 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   Inter-segment   consolidated 
Revenues  $31,289,918   $411,388   $87,578   $
-
   $
-
   $31,788,884 
Gross profit   1,430,181    (814,347)   18,203    
-
    
-
    634,037 
Depreciation and amortization   1,210,646    2,188,973    419,464    
-
    
-
    3,819,083 
Interest income   1,787    226    2,911    
-
    
-
    4,924 
Interest expense   167,431    10,862    80,813    
-
    
-
    259,106 
Income tax expense(benefit)   134,982    (379,460)   649    
-
    
-
    (243,829)
Net income (loss)   650,767    (2,003,653)   (52,758)   1,119,571    (1,840)   (287,913)

 

   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)

 

   Six Months Ended 
   June 30, 2022 
   Dongfang   Hebei   Baoding   Not 
Attributable		   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments    Inter-segment   consolidated 
Revenues  $46,316,551    809,776    144,175    
-
    
-
    47,270,502 
Gross profit   2,287,725    (1,378,124)   34,881    
-
    
-
    944,482 
Depreciation and amortization   2,481,138    4,250,910    860,271    
-
    
-
    7,592,319 
Interest income   3,743    396    4,240    
-
    
-
    8,379 
Interest expense   340,620    24,369    164,930    
-
    
-
    529,919 
Income tax expense(benefit)   54,583    (790,651)   143,250    
-
    
-
    (592,818)
Net income (loss)   (53,906)   (3,609,095)   (284,648)   1,139,359    32,163    (2,776,127)

 

   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                             70,744,342 
Gross profit (loss)   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)             5,022,382 
Net income (loss)   2,935,206    (7,960,911)   (153,821)             (4,792,104)

 

   As of June 30, 2022 
   Dongfang   Hebei   Baoding   Not Attributable  Elimination of  

Enterprise-

wide,

 
   Paper   Tengsheng   Shengde   to Segments  Inter-segment   consolidated 
Total assets  $62,656,905    133,736,099    23,323,044   5,745,345   
        -
    225,461,393 

 

   As of December 31, 2021 
   Dongfang   Hebei   Baoding   Not Attributable  Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments  Inter-segment   consolidated 
Total assets  $109,369,166    93,841,874    29,181,392   9,142,770   
     -
    241,535,202