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Segment Reporting
 9 Months Ended
Sep. 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 basedon 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:

 

   September 30, 2022 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   Inter-segment   consolidated 
                         
Revenues  $31,359,186   $293,157   $56,871   $
-
   $
-
   $31,709,214 
Gross profit   3,524,435    (757,695)   16,848    
-
    
-
    2,783,588 
Depreciation and amortization   1,168,036    2,054,034    403,865    
-
    
-
    3,625,935 
Interest income   4,130    416    2,965    217    
-
    7,728 
Interest expense   160,740    17,230    78,708    
-
    
-
    256,678 
Income tax expense(benefit)   740,764    (337,791)   14,252    15,062    
-
    432,287 
Net income (loss)   2,100,268    (1,871,128)   (12,836)   (2,101,863)   (1,759)   (1,887,318)

 

   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 

 

   Nine Months Ended September 30, 2022 
   Dongfang   Hebei   Baoding   Not
 Attributable		   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   Inter-segment   consolidated 
                         
Revenues  $77,675,737    1,102,933    201,046    
-
    
-
    78,979,716 
Gross profit   5,812,160    (2,135,819)   51,729    
-
    
-
    3,728,070 
Depreciation and amortization   3,649,174    6,304,944    1,264,136    
-
    
-
    11,218,254 
Interest income   7,874    812    7,205    217    
-
    16,108 
Interest expense   501,360    41,599    243,638    
-
    
-
    786,597 
Income tax expense(benefit)   795,347    (1,128,442)   157,502    15,062    
-
    (160,531)
Net income (loss)   2,046,362    (5,480,223)   (297,484)   (962,504)   30,404    (4,663,445)

 

   Nine Months Ended September 30, 2021 
   Dongfang   Hebei   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   Inter-segment   consolidated 
                         
Revenues  $108,949,261    6,487,027    5,714,288    
-
    (5,318,563)   115,832,013 
Gross profit (loss)   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)

 

   As of September 30, 2022 
   Dongfang   Hebei   Baoding   Not
Attributable		   Elimination of   Enterprise-wide, 
   Paper   Tengsheng   Shengde   to Segments   Inter-segment   consolidated 
Total assets  $63,539,735    124,719,775    21,280,523    5,597,506    
           -
    215,137,539 

 

   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