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Segment Reporting
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting

(19) 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 
   June 30, 2024 
   Dongfang   Tengsheng   Baoding   Not
Attributable		   Elimination of   Enterprise-
wide,		 
   Paper   Paper   Shengde   to Segments   Inter-segment   consolidated 
                         
Revenues  $26,212,815   $36,973   $
-
   $
-
   $
            -
   $26,249,788 
Gross profit   3,228,326    36,973    
-
    
-
    
-
    3,265,299 
Depreciation and amortization   893,311    2,096,538    391,246    
-
    
-
    3,381,095 
Interest income   2,088    548    170    1    
-
    2,807 
Interest expense   90,393    45,263    72,123    3,772    
-
    211,551 
Income tax expense(benefit)   416,770    
-
    
-
    
-
    
-
    416,770 
Net income (loss)   2,202,788    (2,111,359)   (82,396)   (86,780)   
-
    (77,747)

 

   Three Months Ended 
   June 30, 2023 
   Dongfang   Tengsheng   Baoding   Not
Attributable		   Elimination of   Enterprise-
wide,		 
   Paper   Paper   Shengde   to Segments   Inter-segment   consolidated 
                         
Revenues  $29,631,400   $344,268   $44,246   $
-
   $
          -
   $30,019,914 
Gross profit   1,893,087    (709,660)   (3,569)   
-
    
-
    1,179,858 
Depreciation and amortization   996,939    2,071,666    395,209    
-
    
-
    3,463,814 
Loss on impairment of assets   
-
    
-
    375,136    
-
    
-
    375,136 
Interest income   47,763    844    4,486    544    
-
    53,637 
Interest expense   144,083    53,991    72,607    
-
    
-
    270,681 
Income tax expense(benefit)   351,260    
-
    
-
    
-
    
-
    351,260 
Net income (loss)   937,333    (1,487,869)   (443,841)   (259,116)   
-
    (1,253,493)

 

   Six Months Ended 
   June 30, 2024 
   Dongfang   Tengsheng   Baoding   Not
Attributable		   Elimination of   Enterprise-
wide,		 
   Paper   Paper   Shengde   to Segments   Inter-segment   consolidated 
                         
Revenues  $33,039,614    74,015    
-
    
-
    
           -
    33,113,629 
Gross profit   3,590,661    73,751    
-
    
-
    
-
    3,664,412 
Depreciation and amortization   1,882,583    4,197,079    783,221    
-
    
-
    6,862,883 
Interest income   3,550    1,084    343    13    
-
    4,990 
Interest expense   179,900    90,117    144,368    7,456    
-
    421,841 
Income tax expense(benefit)   416,770    
-
    
-
    36,793    
-
    453,563 
Net income (loss)   1,068,547    (4,234,116)   (136,908)   (521,806)   
-
    (3,824,283)

 

   Six Months Ended 
   June 30, 2023 
   Dongfang   Tengsheng   Baoding   　 Not
Attributable		   Elimination of   Enterprise-
wide,		 
   Paper   Paper   Shengde   　to Segments   Inter-segment   consolidated 
                         
Revenues  $49,159,596    571,312    79,883    
-
    
      -
    49,810,791 
Gross profit   2,332,167    (1,422,900)   (6,408)   
-
    
-
    902,859 
Depreciation and amortization   2,137,405    4,209,594    803,058    
-
    
-
    7,150,057 
Loss from impairment and disposal of property, plant and equipment   
-
    
-
    375,136    
-
    
-
    375,136 
Interest income   180,946    1,537    5,721    1,701    
-
    189,905 
Interest expense   290,785    82,565    146,500    
-
    
-
    519,850 
Income tax expense(benefit)   351,260    
-
    
-
    
-
    
-
    351,260 
Net income (loss)   367,869    (3,407,989)   (543,126)   (403,412)   
-
    (3,986,658)

 

   As of June 30, 2024 
   Dongfang   Tengsheng   Baoding   Not
Attributable		   Elimination of   Enterprise-
wide,		 
   Paper   Paper   Shengde   to Segments   Inter-segment   consolidated 
                         
Total assets  $59,259,853    122,777,281    7,338,286    1,986,806    
     -
    191,362,226 

 

   As of December 31, 2023 
   Dongfang   Tengsheng   Baoding   Not Attributable   Elimination of   Enterprise-
wide,		 
   Paper   Paper   Shengde   to Segments   Inter-segment   consolidated 
                         
Total assets  $57,139,592    127,734,031    8,184,902    1,685,124    
      -
    194,743,649