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BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2011
BUSINESS SEGMENTS
NOTE 14 – BUSINESS SEGMENTS

The Company has three reportable segments:  bromine, crude salt and chemical products.
 
Three-Month
Period Ended
June 30, 2011
  
Bromine *
    
Crude
Salt *
    
Chemical
Products
    
Segment
Total
    
Corporate
    
Total
  
                                     
Net revenue
   $ 33,230,646     $ 5,994,384     $ 12,075,782     $ 51,300,812     $ -     $ 51,300,812  
Income (loss) from operations
     9,448,177       1,926,627       2,029,160       13,403,964       (407,653 )     12,996,311  
Income taxes
     2,466,262       379,478       506,605       3,352,345       -       3,352,345  
Total assets
     146,989,573       52,795,615       42,676,361       242,461,549       3,013,131       245,474,680  
Depreciation and amortization
     2,859,567       578,359       682,171       4,120,097       -       4,120,097  
Capital expenditures
     24,737,693       16,185,485       37,664       40,960,842       -       40,960,842  
Write-off / Impairment
     3,749,435       2,015,533       1,805,598       7,570,566       -       7,570,566  
 
 
Three-Month
Period Ended
June 30, 2010
  
Bromine *
  
  
Crude
 Salt *
  
  
Chemical
 Products
  
  
Segment
 Total
  
  
Corporate
  
  
Total
  
                                     
Net revenue
  
$
30,940,347
    
$
4,043,723
    
$
11,767,739
    
$
46,751,809
    
$
-
    
$
46,751,809
  
Income (loss) from operations
    
15,627,586
      
3,051,102
      
3,389,772
      
22,068,460
      
(191,054
)
    
21,877,406
  
Income taxes
    
4,088,467
      
571,087
      
851,179
      
5,510,733
      
-
      
5,510,733
  
Total assets
    
123,191,728
      
23,437,717
      
35,466,253
      
182,095,698
      
53,107
      
182,148,805
  
Depreciation and amortization
    
1,741,822
      
246,386
      
421,845
      
2,410,053
      
-
      
2,410,053
  
Capital expenditures
    
10,407,637
      
4,214,008
      
2,641,140
      
17,262,785
      
-
      
17,262,785
  
 
Six-Month
Period Ended
June 30, 2011
  
Bromine *
  
  
Crude
 Salt *
  
  
Chemical
 Products
  
  
Segment
 Total
  
  
Corporate
  
  
Total
  
                                     
Net revenue
  
$
63,379,962
    
$
11,028,718
    
$
22,270,664
    
$
96,679,344
    
$
-
    
$
96,679,344
  
Income (loss) from operations
    
25,798,291
      
5,873,545
      
5,385,697
      
37,057,533
      
(3,819,714
)
    
33,237,819
  
Income taxes
    
6,742,153
      
1,192,917
      
1,350,397
      
9,285,467
      
-
      
9,285,467
  
Total assets
    
146,989,573
      
52,795,615
      
42,676,361
      
242,461,549
      
3,013,131
      
245,474,680
  
Depreciation and amortization
    
5,014,155
      
1,098,678
      
1,355,783
      
7,468,616
      
-
      
7,468,616
  
Capital expenditures
    
31,649,079
      
16,185,485
      
37,664
      
47,872,228
      
-
      
47,872,228
  
Write-off / Impairment 
    
3,749,435
      
2,015,533
      
1,805,598
      
7,570,566
      
- 
      
7,570,566
  
 
Six-Month
Period Ended
June 30, 2010
  
Bromine *
  
  
Crude
 Salt *
  
  
Chemical
 Products
  
  
Segment
 Total
  
  
Corporate
  
  
Total
  
                                     
Net revenue
  
$
48,002,907
    
$
6,877,621
    
$
21,564,699
    
$
76,445,227
    
$
-
    
$
76,445,227
  
Income (loss) from operations
    
22,828,098
      
4,976,418
      
6,753,287
      
34,557,803
      
(1,625,171
)
    
32,932,632
  
Income taxes
    
6,057,402
      
896,765
      
1,695,240
      
8,649,407
      
-
      
8,649,407
  
Total assets
    
123,191,728
      
23,437,717
      
35,466,253
      
182,095,698
      
53,107
      
182,148,805
  
Depreciation and amortization
    
3,424,609
      
519,605
      
843,460
      
4,787,674
      
-
      
4,787,674
  
Capital expenditures
    
10,407,637
      
4,214,008
      
7,040,639
      
21,662,284
      
-
      
21,662,284
  

* Certain common production overheads, operating and administrative expenses and asset items (mainly cash and certain office equipment) of bromine and crude salt segments in SCHC were split by reference to the average selling price and production volume of respective segment.

 
  
  
Three-Month Period
    
Six-Month Period
  
  
  
Ended June 30,
    
Ended June 30
  
Reconciliations
  
2011
    
2010
    
2011
    
2010
  
                                 
Total segment operating income
  
$
13,403,964
    
$
22,068,460
    
$
37,057,533
    
$
34,557,803
  
Corporate overhead expenses
    
(407,653
)
    
(191,054
)
    
(3,819,714
)
    
(1,625,171
) 
Other income
    
379,289
      
59,772
      
435,902
      
135,356
  
Income tax expense
    
(3,352,345
)
    
(5,510,733
)
    
(9,285,467
)
    
(8,649,407
)
                                 
Total consolidated net income
  
$
10,023,255
    
$
16,426,445
    
$
24,388,254
    
$
24,418,581
  
 
The following table shows the major customer(s) (10% or more) for the three-month period ended June 30, 2011.

Number
  
Customer
  
Bromine
(000’s)
    
Crude
Salt
(000’s)
    
Chemical
Products
(000’s)
    
Total
Revenue
(000’s)
    
Percentage
of
Total
Revenue (%)
  
1  
Shandong Morui Chemical
Company Limited
  
$
3,507
    
$
1,121
    
$
760
    
$
5,388
      
10.5%
  
TOTAL
      
$
3,507
    
$
1,121
    
$
760
    
$
5,388
      
10.5%
  

The following table shows the major customer(s) (10% or more) for the six-month period ended June 30, 2011.

Number
  
Customer
  
Bromine
(000’s)
    
Crude
Salt
(000’s)
    
Chemical
Products
(000’s)
    
Total
Revenue
(000’s)
    
Percentage
of
Total
Revenue (%)
  
1  
Shandong Morui Chemical
Company Limited
  
$
9,238
    
$
1,963
    
$
1,329
    
$
12,530
      
13.0%
  
2  
Shouguang City Rongyuan Chemical Company Limited
  
$
7,285
    
$
2,622
    
$
-
    
$
9,907
      
10.3%
  
TOTAL
      
$
16,523
    
$
4,585
    
$
1,329
    
$
22,437
      
23.3%
  

The following table shows the major customer(s) (10% or more) for the three-month period ended June 30, 2010.
 
Number
  
Customer
  
Bromine
(000’s)
    
Crude
Salt
(000’s)
    
Chemical
Products
(000’s)
    
Total
Revenue
(000’s)
    
Percentage
of
Total
Revenue (%)
  
1
  
Shouguang City Rongyuan
Chemical Company Limited
  
$
4,097
    
$
1,047
    
$
-
    
$
5,114
      
11.0%
  
TOTAL
      
$
4,097
    
$
1,047
    
$
-
    
$
5,114
      
11.0%
  

The following table shows the major customer(s) (10% or more) for the six-month period ended June 30, 2010.

Number
  
Customer
  
Bromine
(000’s)
    
Crude
Salt
(000’s)
    
Chemical
Products
(000’s)
    
Total
Revenue
(000’s)
    
Percentage
of
Total
Revenue (%)
  
1
  
Shouguang City Rongyuan
Chemical Company Limited
  
$
6,712
    
$
1,546
    
$
-
    
$
8,258
      
10.8%
  
TOTAL
      
$
6,712
    
$
1,546
    
$
-
    
$
8,258
      
10.8%