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16. BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2013
Segment Reporting [Abstract]  
16. BUSINESS SEGMENTS

The Company has three reportable segments:  bromine, crude salt and chemical products. The reportable segments are consistent with how management views the markets served by the Company and the financial information that is reviewed by its chief operating decision maker.

 

An operating segment’s performance is primarily evaluated based on segment operating income, which excludes share-based compensation expense, certain corporate costs and other income not associated with the operations of the segment. These corporate costs (income) are separately stated below and also include costs that are related to functional areas such as accounting, treasury, information technology, legal, human resources, and internal audit. The Company believes that segment operating income, as defined above, is an appropriate measure for evaluating the operating performance of its segments. All the customers are located in PRC.

 

 

Year Ended

December 31, 2013

   Bromine *    

Crude

 Salt *

    

Chemical

 Products

    

Segment

 Total

     Corporate     Total  

Net revenue

(external customers)

   $ 60,488,886     $ 13,790,128     $ 44,112,769     $ 118,391,783     $ -     $ 118,391,783  
Net revenue (intersegment)     2,947,350       -       -       2,947,350       -       2,947,350  
Income (loss) from operations before taxes     13,152,092       3,831,272       13,371,119       30,354,483       (1,910,990 )     28,443,493  
Income taxes     3,459,256       785,879       3,362,548       7,607,683       -       7,607,683  
Income (loss) from operations after taxes     9,692,836       3,045,393       10,008,571       22,746,800       (1,910,990 )     20,835,810  
Total assets     181,490,011       61,138,301       66,479,395       309,107,707       137,098       309,244,805  
Depreciation and amortization     17,384,351       6,547,844       3,528,498       27,460,693       -       27,460,693  
Capital expenditures         2,780,023       406,586       6,072       3,192,681       -       3,192,681  
Write-off / Impairment     24,503       3,247       214       27,964       -       27,964  

 

 

Year Ended

December 31, 2012

   Bromine *    

Crude

 Salt *

    

Chemical

 Products

    

Segment

 Total

     Corporate     Total  

Net revenue

(external customers)

   $ 56,332,785     $ 11,143,848     $ 34,224,249     $ 101,700,882     $ -     $ 101,700,882  
Net revenue (intersegment)     2,739,256       -       -       2,739,256       -       2,739,256  
Income (loss) from operations before taxes     9,817,947       2,932,694       9,289,175       22,039,816       (1,554,961 )     20,484,855  
Income taxes     2,658,235       588,556       2,344,662       5,591,453       -       5,591,453  
Income (loss) from operations after taxes     7,159,712       2,344,138       6,944,513       16,448,363       (1,554,961 )     14,893,402  
Total assets     168,434,071       55,732,942       53,995,682       278,162,695       30,339       278,193,034  
Depreciation and amortization     14,589,701       6,063,323       2,664,571       23,317,595       -       23,317,595  
Capital expenditures         26,302,483       5,771,888       10,180,860       42,255,231       -       42,255,231  
Write-off / Impairment     891,605       150,533       -       1,042,138       -       1,042,138  

 

 

 

* 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.

 

    Years ended December 31,  
Reconciliations   2013     2012    
               
Total segment operating income   $ 30,354,483     $ 22,039,816    
Corporate costs     (1,910,990 )     (1,554,961 )  
Income from operations     28,443,493       20,484,855    
Other income     131,548       102,101    
Income before taxes   $ 28,575,041     $ 20,586,956    
                     

 

 

 

The following table shows the major customer(s) (10% or more) for the year ended December 31, 2013.

 

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

 

$ 6,955

  

 

$ 3,520

  

 

$ 4,556

   $  15,031   12.7%
TOTAL     $  6,955   $  3,520   $  4,556   $  15,031   12.7%

 

 

The following table shows the major customer(s) (10% or more) for the year ended December 31, 2012.

 

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

 

$ 6,267

  

 

$ 2,376

  

 

$ 4,038

   $  12,681   12.5%
TOTAL     $  6,267   $  2,376   $  4,038   $  12,681   12.5%