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15. BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
15. 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, 2015   Bromine *    

Crude

 Salt *

    

Chemical

 Products

    

Segment

 Total

     Corporate     Total  

Net revenue

(external customers)

   $ 11,033,249     $ 1,963,731     $ 21,913,849     $ 34,910,829     $ -     $ 34,910,829  

Net revenue

(intersegment)

     1,505,677       -       -       1,505,677       -       1,505,677  
Income (loss) from operations before taxes     136,959       187,535       7,046,740       7,371,234       (260,583 )     7,110,651  
Income taxes     75,406       9,057       1,787,025       1,871,488       -       1,871,488  
Income (loss) from operations after taxes     61,553       178,478       5,259,715       5,499,746       (260,583 )     5,239,163  
Total assets     140,192,979       37,708,081       176,388,517       354,289,577       35,354       354,324,931  
Depreciation and amortization     4,735,301       1,401,296       1,242,391       7,378,988       -       7,378,988  
Goodwill     -       -       31,452,271       31,452,271       -       31,452,271  

 

 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  

 

 

* 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               2015     2014  
Total segment operating income                   $ 7,371,234     $ 5,431,312    
Corporate costs                     (361,942 )     (65,092 )   
Unrealized gain on translation of intercompany balance                     101,359       235,424    
Income from operations                     7,110,651       5,601,644    
Other income                     76,108       53,763    
Income before taxes                   $ 7,186,759     $ 5,655,407    

 

The following table shows the major customer(s) (10% or more) for the three-month period ended March 31, 2015.

 

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

 

$ 1,690

  

 

$ 464

  

 

$ 1,710

   $  3,864   11.1%
TOTAL     $  1,690   $  464   $  1,710   $  3,864   11.1%

 

 

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%