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14. BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
14. 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.

 

 Three-Month Period Ended March 31, 2014   Bromine *    

Crude

 Salt *

    

Chemical

 Products

    

Segment

 Total

     Corporate     Total  

Net revenue

(external customers)

   $ 11,761,916     $ 2,441,895     $ 11,388,365     $ 25,592,179     $ -     $ 22,592,176  

Net revenue

(intersegment)

     783,993       -       -       783,993       -       783,993  
Income (loss) from operations before taxes     1,018,271       643,308       3,769,733       5,431,312       170,332       5,601,644  
Income taxes     364,585       55,240       949,244       1,369,069       -       1,369,069  
Income (loss) from operations after taxes     653,687       588,067       2,820,489       4,062,243       170,322       4,232,575  
Total assets     187,576,805       53,277,324       68,675,614       309,529,743       84,675       309,614,418  
Depreciation and amortization     4,550,142       1,494,758       893,340       6,938,240       -       6,938,240  
Capital expenditures     34,378       5,208       -       39,586       -       39,586  
Write-off / Impairment      -       -       -       -       -       -  

 

 Three-Month Period Ended March 31, 2013   Bromine *    

Crude

 Salt *

    

Chemical

 Products

    

Segment

 Total

     Corporate     Total  

Net revenue

(external customers)

   $ 11,734,367     $ 2,450,786     $ 8,317,427     $ 22,502,580     $ -     $ 22,502,580  

Net revenue

(intersegment)

     614,730       -       -       614,730       -       614,730  
Income (loss) from operations before taxes     327,813       538,220       2,096,679       2,962,712       (357,264 )     2,605,448  
Income taxes     180,632       33,266       528,422       742,320       -       742,320  
Income (loss) from operations after taxes     147,181       504,954       1,568,257       2,220,392       (357,264 )     1,863,128  
Total assets     166,871,312       56,641,404       55,994,831       279,507,547       121,682       279,629,229  
Depreciation and amortization     4,377,972       1,559,199       870,317       6,807,488       -       6,807,488  
Capital expenditures     -       -       -       -       -       -  
Write-off / Impairment      -       -       -       -       -       -  

 

* 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 Ended March 31,  
Reconciliations   2014     2013  
Total segment operating income   $ 5,431,312     $ 2,962,712  
Corporate costs     (65,092 )     (292,145 ) 
Unrealized gain(loss) on translation of intercompany balance     235,424       (65,119 )
Income from operations     5,601,644       2,605,448  
Other income     53,763       19,837  
Income before taxes   $ 5,655,407     $ 2,625,285  

 

The following table shows the major customer(s) (10% or more) for the three-month period ended March 31, 2014.

 

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

 

$  1,582

  

 

$  571

  

 

$  1,386

   $  3,539   13.4%
TOTAL     $  1,582   $  571   $  1,386   $  3,539   13.4%

 

 

The following table shows the major customer(s) (10% or more) for the three-month period ended March 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

 

$  1,182

  

 

$  743

  

 

$  930

   $  2,855   12.7%
TOTAL     $  1,182   $  743   $  930   $  2,855   12.7%