v3.24.3
Segment Reporting
 9 Months Ended
Sep. 30, 2024
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 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, 2024 
   Dongfang   Tengsheng   Baoding   Not Attributable   Elimination of   Enterprise-wide, 
   Paper   Paper   Shengde   to Segments   Inter-segment   consolidated 
                         
Revenues  $25,044,376   $37,124   $
-
   $
-
   $
             -
   $25,081,500 
Gross profit   1,880,540    37,124    
-
    (283)   
-
    1,917,381 
Depreciation and amortization   985,358    2,105,088    392,852    
-
    
-
    3,483,298 
Interest income   6,678    461    155    19    
-
    7,313 
Interest expense   90,058    4,440    73,252    3,680    
-
    171,430 
Income tax expense (benefit)   345,710    
-
    
-
    
-
    
-
    345,710 
Net income (loss)   842,424    (2,555,935)   (90,348)   (170,087)   
-
    (1,973,946)

 

   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)

 

   Nine Months Ended September 30, 2024 
   Dongfang   Tengsheng   Baoding   Not Attributable   Elimination   Enterprise-wide, 
   Paper   Paper   Shengde   to Segments   of Inter-segment   consolidated 
                         
Revenues  $58,083,990    111,139    
-
    
-
    
                -
    58,195,129 
Gross profit   5,471,201    110,876    
-
    (283)   
-
    5,581,794 
Depreciation and amortization   2,867,941    6,302,167    1,176,073    
-
    
-
    10,346,181 
Interest income   10,228    1,545    498    32    
-
    12,303 
Interest expense   269,958    94,557    217,620    11,136    
-
    593,271 
Income tax expense(benefit)   762,480    
-
    
-
    36,793    
-
    799,273 
Net income (loss)   1,910,971    (6,790,051)   (227,256)   (691,893)   
-
    (5,798,229)

 

   Nine Months Ended September 30, 2023 
   Dongfang   Tengsheng   Baoding 　   Not Attributable   Elimination   Enterprise-wide, 
   Paper   Paper   Shengde 　   to Segments   of 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 from impairment and disposal of property, plant and equipment   
-
    
-
    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)

 

   As of September 30, 2024 
   Dongfang   Tengsheng   Baoding   Not Attributable   Elimination   Enterprise-wide, 
   Paper   Paper   Shengde   to Segments   of Inter-segment   consolidated 
                               
Total assets  $58,384,088    122,724,808    7,006,987    1,902,356    
               -
    190,018,239 

 

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