XML 88 R20.htm IDEA: XBRL DOCUMENT v2.4.1.9
14. BUSINESS SEGMENTS
 12 Months Ended
Dec. 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. All intersegment transactions have been eliminated. 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, 2014

   Bromine *    

Crude

Salt *

    

Chemical

Products

    

Segment

Total

     Corporate     Total  

Net revenue

(external customers)

   $ 57,949,824     $ 10,752,226     $ 44,958,281     $ 113,660,331     $ -     $ 113,660,331  
Net revenue (intersegment)     3,013,295       -       -       3,013,295       -       3,013,295  
Income (loss) from operations before taxes     9,500,428       719,226       14,432,851       24,652,505       (834,284 )     23,818,221  
Income taxes     2,214,988       370,974       3,640,053       6,226,015       -       6,226,015  
Income (loss) from operations after taxes     7,285,440       348,252       10,792,798       18,426,490       (834,284 )     17,592,206  
Total assets     195,539,637       51,632,485       75,748,241       322,920,363       61,789       322,982,152  
Depreciation and amortization     18,011,790       6,076,042       3,554,390       27,642,222       -       27,642,222  
Capital expenditures         5,414,738       1,123,873       -       6,538,611       -       6,538,611  

 

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  

 

 * 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   2014     2013  
             
Total segment operating income   $ 24,652,505     $ 30,354,483  
Corporate costs     (834,284 )     (1,910,990 )
Income from operations     23,818,221       28,443,493  
Other income     279,589       131,548  
Income before taxes   $ 24,097,810     $ 28,575,041  

 

The following table shows the major customer(s) (10% or more) for the year ended December 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   $ 8,519     $ 2,576     $ 6,477     $ 17,572       15.5%  
TOTAL       $ 8,519     $ 2,576     $ 6,477     $ 17,572       15.5%  
                                               

 

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%