XML 40 R24.htm IDEA: XBRL DOCUMENT v3.23.3
Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting

(17) Segment Reporting

 

Since March 10, 2010, Baoding Shengde started its operations and thereafter the Company manages its operations through three business operating segments: Dongfang Paper and Tengsheng Paper, which produces offset printing paper, corrugating medium paper and tissue paper, and Baoding Shengde, which produces face masks and 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 among 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, 2023 
   Dongfang   Tengsheng   Baoding   Not Attributable   Elimination of    Enterprise-wide, 
   Paper   Paper   Shengde   to Segments   Inter-segment   consolidated 
                         
Revenues  $15,492,300   $264,063   $15,197   $ -   $               -   $15,771,560 
Gross profit   583,651    (734,481)   (2,393)   -    -    (153,223)
Depreciation and amortization   960,898    2,071,901    390,432    -    -    3,423,231 
Loss on impairment of assets   -    -    (3,456)   -    -    (3,456)
Interest income   90,449    561    2,250    38    -    93,298 
Interest expense   119,795    52,199    72,291    3,533    -    247,818 
Income tax expense(benefit)   (3,236)   -    -    -    -    (3,236)
Net income (loss)   (398,386)   (2,114,896)   (84,850)   622,764    -    (1,975,368)

 

   Three Months Ended 
   September 30, 2022 
   Dongfang   Tengsheng   Baoding   Not Attributable   Elimination of    Enterprise-wide, 
   Paper   Paper   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)

 

   Nine Months Ended 
   September 30, 2023 
   Dongfang   Tengsheng   Baoding   Not Attributable   Elimination of    Enterprise-wide, 
   Paper   Paper   Shengde   to Segments   Inter-segment    consolidated 
                         
Revenues  $64,651,896    835,375    95,080    -            -    65,582,351 
Gross profit   2,915,818    (2,157,381)   (8,801)   -    -    749,636 
Depreciation and amortization   3,098,303    6,281,495    1,193,490    -    -    10,573,288 
Loss on impairment of assets   -    -    371,680    -    -    371,680 
Interest income   271,395    2,098    7,971    1,739    -    283,203 
Interest expense   410,580    134,764    218,791    3,533    -    767,668 
Income tax expense(benefit)   348,024    -    -    -    -    348,024 
Net income (loss)   (30,517)   (5,522,885)   (627,976)   219,352    -    (5,962,026)

  

   Nine Months Ended 
   September 30, 2022 
   Dongfang   Tengsheng   Baoding   Not Attributable   Elimination of    Enterprise-wide, 
   Paper   Paper   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)

 

   As of September 30, 2023 
   Dongfang   Tengsheng   Baoding   Not Attributable   Elimination of    Enterprise-wide, 
   Paper   Paper   Shengde   to Segments   Inter-segment    consolidated 
                               
Total assets  $63,466,149    107,979,374    12,930,971    4,621,212           -    188,997,706 

 

   As of December 31, 2022 
   Dongfang   Tengsheng   Baoding   Not Attributable   Elimination of    Enterprise-wide, 
   Paper   Paper   Shengde   to Segments   Inter-segment    consolidated 
                               
Total assets  $63,365,986    117,645,828    17,945,969    5,489,450             -    204,447,233