| Segment information |
The
Group follows ASC 280 Segment Reporting,
which requires the Group to disclose segment data based on how
management makes decision about allocating resources to segments
and evaluating their performance. The Group operates in
two reportable segments; manufacture and sale of shoes
(“Shoes”) and sale of apparel (“Apparel”).
The Group evaluates segment performance based on income from
operations. All inter-company transactions between
segments have been eliminated. As a result, the
components of the operating income for one segment may not be
comparable to another segment. The following is a
summary of the Group’s segment information.
Segment revenue and results
The
following is an analysis of the Group’s revenue and results
from operations by reportable segment (unaudited).
| |
|
Segment revenue
|
|
|
Segment profit
|
|
| |
|
Three months ended June 30,
|
|
|
Three months ended June 30,
|
|
| |
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
Shoes
|
|
$ |
23,425,266 |
|
|
$ |
18,163,717 |
|
|
$ |
7,169,498 |
|
|
$ |
5,648,966 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apparel
|
|
|
5,987,704 |
|
|
|
4,634,733 |
|
|
|
1,845,953 |
|
|
|
1,465,407 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
for operations
|
|
$ |
29,412,970 |
|
|
$ |
22,798,450 |
|
|
|
9,015,451 |
|
|
|
7,114,373 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and other (expense) income
|
|
|
|
|
|
|
|
|
|
|
(25,006 |
) |
|
|
17,562 |
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
(2,462,531 |
) |
|
|
(1,171,586 |
) |
|
Finance
costs
|
|
|
|
|
|
|
|
|
|
|
(59,633 |
) |
|
|
(48,131 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
|
|
|
|
|
|
|
|
|
6,468,281 |
|
|
|
5,912,218 |
|
|
Income
taxes
|
|
|
|
|
|
|
|
|
|
|
(1,013,121 |
) |
|
|
(1,568,838 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
|
|
|
|
|
$ |
5,455,160 |
|
|
$ |
4,343,380 |
|
| |
|
Segment revenue
|
|
|
Segment profit
|
|
| |
|
Six months ended June 30,
|
|
|
Six months ended June 30,
|
|
| |
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
Shoes
|
|
$ |
48,725,231 |
|
|
$ |
38,030,952 |
|
|
$ |
14,884,588 |
|
|
$ |
11,861,559 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apparel
|
|
|
12,109,497 |
|
|
|
9,537,834 |
|
|
|
3,594,513 |
|
|
|
2,957,477 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
for operations
|
|
$ |
60,834,728 |
|
|
$ |
47,568,786 |
|
|
|
18,479,101 |
|
|
|
14,819,036 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and other (expense) income
|
|
|
|
|
|
|
|
|
|
|
(20,796 |
) |
|
|
21,192 |
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
(4,138,528 |
) |
|
|
(2,312,662 |
) |
|
Finance
costs
|
|
|
|
|
|
|
|
|
|
|
(102,010 |
) |
|
|
(77,784 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
|
|
|
|
|
|
|
|
|
14,217,767 |
|
|
|
12,449,782 |
|
|
Income
taxes
|
|
|
|
|
|
|
|
|
|
|
(3,244,433 |
) |
|
|
(3,162,190 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
|
|
|
|
|
$ |
10,973,334 |
|
|
$ |
9,287,592 |
|
Revenue
reported above represents revenue generated from external
customers. There were no inter-segment sales in the
period.
Other segment information
| |
|
Depreciation and amortization
|
|
| |
|
Three months ended June
30,
|
|
|
Six months ended June
30,
|
|
| |
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
Shoes
|
|
$ |
22,661 |
|
|
$ |
20,488 |
|
|
$ |
60,032 |
|
|
$ |
56,498 |
|
|
Unallocated
|
|
|
75,865 |
|
|
|
59,888 |
|
|
|
134,778 |
|
|
|
104,117 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
98,526 |
|
|
$ |
80,376 |
|
|
$ |
194,810 |
|
|
$ |
160,615 |
|
| |
|
Additions to long-lived assets
|
|
| |
|
Three months ended June
30,
|
|
|
Six months ended June
30,
|
|
| |
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
Shoes
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
115,911 |
|
|
$ |
- |
|
|
Unallocated
|
|
|
- |
|
|
|
- |
|
|
|
458 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
116,369 |
|
|
$ |
- |
|