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15. BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 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 June 30, 2015   Bromine*    

Crude

 Salt*

    

Chemical

 Products

    

Segment

 Total

     Corporate     Total  

Net revenue

(external customers)

   $ 15,092,861     $ 2,909,342     $ 31,347,867     $ 49,350,070     $ -     $ 49,350,070  

Net revenue

(intersegment)

     2,518,562       -       -       2,518,562       -       2,518,562  
Income (loss) from operations before taxes     4,505,928       (4,027 )     10,765,654       15,267,555       (706,166 )     14,561,389  
Income taxes     951,896       171,681       2,719,721       3,843,298       -       3,843,298  
Income (loss) from operations after taxes     3,554,032       (175,708 )     8,045,933       11,424,257       (706,166 )     10,718,091  
Total assets     142,221,356       40,055,235      

 

186,715,430

       368,992,021       33,732       369,025,753  
Depreciation and amortization     4,501,603       1,589,490       1,436,588       7,527,681       -       7,527,681  
Goodwill     -       -       31,396,066       31,396,066       -      

 

31,396,066

  

 

Three-Month Period Ended June 30, 2014   Bromine*    

Crude

 Salt*

    

Chemical

 Products

    

Segment

 Total

     Corporate     Total  

Net revenue

(external customers)

   $ 16,214,612     $  2,915,445     $ 12,622,757     $ 31,752,814     $ -     $ 31,752,814  

Net revenue

(intersegment)

     836,840       -       -       836,840       -       836,840  
Income (loss) from operations before taxes     3,599,026       (116,798 )     4,191,572       7,673,800       (142,228 )     7,531,572  
Income taxes     735,834       141,819       1,055,850       1,933,503       -       1,933,503  
Income (loss) from operations after taxes     2,863,192       (258,617 )     3,135,722       5,740,297       (142,228 )     5,598,069  
Total assets     189,852,951       53,961,678       72,505,351       316,319,980       25,561       316,345,541  
Depreciation and amortization     4,378,252       1,604,960       887,546       6,870,758       -       6,870,758  
Capital expenditures     -       -       -       -       -      

 

-

  

 

Six-Month Period Ended June 30, 2015   Bromine*    

Crude

 Salt*

    

Chemical

 Products

    

Segment

 Total

     Corporate     Total  

Net revenue

(external customers)

   $ 26,126,110     $ 4,873,073     $ 53,261,716     $ 84,260,899     $ -     $ 84,260,899  

Net revenue

(intersegment)

     4,024,239       -       -       4,024,239       -       4,024,239  
Income (loss) from operations before taxes     4,642,886       183,509       17,812,394       22,638,789       (966,749 )     21,672,040  
Income taxes     1,027,302       180,738       4,506,746       5,714,786       -       5,714,786  
Income (loss) from operations after taxes     3,615,584       2,771       13,305,648       16,924,003       (966,749 )     15,957,254  
Total assets     142,221,356       40,055,235      

 

186,715,430

       368,992,021       33,732       369,025,753  
Depreciation and amortization     9,236,903       2,990,787       2,678,979       14,906,669       -       14,906,699  
Goodwill     -       -       31,396,066       31,396,066       -       31,396,066  
                                                       

 

Six-Month Period Ended June 30, 2014   Bromine*    

Crude

 Salt*

    

Chemical

 Products

    

Segment

 Total

     Corporate     Total    

Net revenue

(external customers)

   $ 27,976,528     $ 5,357,340     $ 24,011,122     $ 57,344,990     $ -     $ 57,344,990

Net revenue

(intersegment)

     1,620,833       -       -       1,620,833       -       1,620,833
Income (loss) from operations before taxes     4,617,298       526,509       7,961,305       13,105,112       28,104       13,133,216
Income taxes     1,100,419       197,059       2,005,094       3,302,572       -       3,302,572
Income (loss) from operations after taxes     3,516,879       329,450       5,956,211       9,802,540       28,104       9,830,644
Total assets     189,852,951       53,961,678       72,505,351       316,319,980       25,561       316,345,541
Depreciation and amortization     8,928,395       3,099,717       1,780,886       13,808,998       -       13,808,998
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 June 30,     Six-Month Period Ended June 30,  
Reconciliations   2015     2014     2015     2014  
Total segment operating income   $ 15,267,555     $ 7,673,800     $ 22,638,789     $ 13,105,112  
Corporate costs     (706,166 )     (142,228 )     (966,749 )     28,104  
Income from operations     14,561,389       7,531,572       21,672,040       13,133,216  
Other income, net of expense     57,169       66,743       133,277       120,506  
Income before taxes   $ 14,618,558     $ 7,598,315     $ 21,805,317     $ 13,253,722  

  

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

 

$ 2,382

  

 

$ 731

  

 

$ 1,973

   $  5,086   10.3%
TOTAL     $  2,382   $  731   $  1,973   $  5,086   10.3%

 

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

 

$ 4,072

  

 

$ 1,195

  

 

$ 3,684

   $  8,951   10.6%
TOTAL     $  4,072   $  1,195   $  3,684   $  8,951   10.6%

 

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

 

$ 2,505

  

 

$ 693

  

 

$ 1,935

   $  5,133   16.2%
TOTAL     $  2,505   $  693   $  1,935   $  5,133   16.2%

  

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

 

$ 4,088

  

 

$ 1,264

  

 

$ 3,320

   $  8,672   15.1%
TOTAL     $  4,088   $  1,264   $  3,320   $  8,672   15.1%