XML 74 R21.htm IDEA: XBRL DOCUMENT
v3.3.0.814

15. BUSINESS SEGMENTS | 9 Months Ended
--- | ---
Sep. 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 September 30, 2015 |  | Bromine* |  |  | Crude Salt* |  |  | Chemical Products |  |  | Segment Total |  |  | Corporate |  |  | Total |
Net revenue (external customers) |  | $ | 14,940,666 |  |  | $ | 3,032,201 |  |  | $ | 24,628,731 |  |  | $ | 42,601,598 |  |  | $ | - |  |  | $ | 42,601,598 |
Net revenue (intersegment) |  |  | 2,330,808 |  |  |  | - |  |  |  | - |  |  |  | 2,330,808 |  |  |  | - |  |  |  | 2,330,808 |
Income from operations before taxes |  |  | 4,307,709 |  |  |  | 351,251 |  |  |  | 8,393,184 |  |  |  | 13,052,144 |  |  |  | 851,014 |  |  |  | 13,903,158 |
Income taxes |  |  | 932,211 |  |  |  | 231,354 |  |  |  | 2,126,807 |  |  |  | 3,290,372 |  |  |  | - |  |  |  | 3,290,372 |
Income from operations after taxes |  |  | 3,375,498 |  |  |  | 119,897 |  |  |  | 6,266,377 |  |  |  | 9,761,772 |  |  |  | 851,014 |  |  |  | 10,612,786 |
Total assets |  |  | 142,874,828 |  |  |  | 42,858,017 |  |  |  | 181,468,875 |  |  |  | 367,201,720 |  |  |  | 38,165 |  |  |  | 367,239,885 |
Depreciation and amortization |  |  | 3,961,290 |  |  |  | 1,680,827 |  |  |  | 1,405,726 |  |  |  | 7,047,843 |  |  |  | - |  |  |  | 7,047,843 |
Capital expenditures |  |  | 2,365,417 |  |  |  | 427,283 |  |  |  | - |  |  |  | 2,792,700 |  |  |  | - |  |  |  | 2,792,700 |
Three-Month Period Ended September 30, 2014 |  | Bromine* |  |  | Crude Salt* |  |  | Chemical Products |  |  | Segment Total |  |  | Corporate |  |  | Total
Net revenue (external customers) |  | $ | 15,973,528 |  |  | $ | 2,655,028 |  |  | $ | 12,478,408 |  |  | $ | 31,106,964 |  |  | $ | - |  |  | $ | 31,106,964
Net revenue (intersegment) |  |  | 832,946 |  |  |  | - |  |  |  | - |  |  |  | 832,946 |  |  |  | - |  |  |  | 832,946
Income (loss) from operations before taxes |  |  | 3,131,684 |  |  |  | (431,901 | ) |  |  | 4,161,811 |  |  |  | 6,861,594 |  |  |  | (167,005 | ) |  |  | 6,694,589
Income taxes |  |  | 793,882 |  |  |  | (109,510) |  |  |  | 1,048,489 |  |  |  | 1,732,861 |  |  |  | - |  |  |  | 1,732,861
Income (loss) from operations after taxes |  |  | 2,337,802 |  |  |  | (322,391 | ) |  |  | 3,113,322 |  |  |  | 5,128,733 |  |  |  | (167,005 | ) |  |  | 4,961,728
Total assets |  |  | 190,832,648 |  |  |  | 54,799,590 |  |  |  | 75,322,416 |  |  |  | 320,954,654 |  |  |  | 43,825 |  |  |  | 320,998,479
Depreciation and amortization |  |  | 4,266,547 |  |  |  | 1,638,806 |  |  |  | 887,710 |  |  |  | 6,793,063 |  |  |  | - |  |  |  | 6,793,063
Capital expenditures |  |  | 5,342,659 |  |  |  | 1,116,591 |  |  |  | - |  |  |  | 6,459,250 |  |  |  | - |  |  |  | 6,459,250
Nine-Month Period Ended September 30, 2015 |  | Bromine* |  |  | Crude Salt* |  |  | Chemical Products |  |  | Segment Total |  |  | Corporate |  |  | Total |
Net revenue (external customers) |  | $ | 41,066,776 |  |  | $ | 7,905,274 |  |  | $ | 77,890,447 |  |  | $ | 126,862,497 |  |  | $ | - |  |  | $ | 126,862,497 |
Net revenue (intersegment) |  |  | 6,355,047 |  |  |  | - |  |  |  | - |  |  |  | 6,355,047 |  |  |  | - |  |  |  | 6,355,047 |
Income (loss) from operations before taxes |  |  | 8,950,595 |  |  |  | 534,760 |  |  |  | 26,205,578 |  |  |  | 35,690,933 |  |  |  | (115,735 | ) |  |  | 35,575,198 |
Income taxes |  |  | 1,959,513 |  |  |  | 412,092 |  |  |  | 6,633,553 |  |  |  | 9,005,158 |  |  |  | - |  |  |  | 9,005,158 |
Income (loss) from operations after taxes |  |  | 6,991,082 |  |  |  | 122,668 |  |  |  | 19,572,025 |  |  |  | 26,685,775 |  |  |  | (115,735 | ) |  |  | 26,570,040 |
Total assets |  |  | 142,874,828 |  |  |  | 42,858,017 |  |  |  | 181,468,875 |  |  |  | 367,201,720 |  |  |  | 38,165 |  |  |  | 367,239,885 |
Depreciation and amortization |  |  | 13,198,194 |  |  |  | 4,671,613 |  |  |  | 4,084,705 |  |  |  | 21,954,512 |  |  |  | - |  |  |  | 21,954,512 |
Capital expenditures |  |  | 2,365,417 |  |  |  | 427,283 |  |  |  | - |  |  |  | 2,792,700 |  |  |  | - |  |  |  | 2,792,700 |
Nine-Month Period Ended September 30, 2014 |  | Bromine* |  |  | Crude Salt* |  |  | Chemical Products |  |  | Segment Total |  |  | Corporate |  |  | Total |
Net revenue (external customers) |  | $ | 43,950,056 |  |  | $ | 8,012,368 |  |  | $ | 36,489,530 |  |  | $ | 88,451,954 |  |  | $ | - |  |  | $ | 88,451,954 |
Net revenue (intersegment) |  |  | 2,453,779 |  |  |  | - |  |  |  | - |  |  |  | 2,453,779 |  |  |  | - |  |  |  | 2,453,779 |
Income (loss) from operations before taxes |  |  | 7,748,981 |  |  |  | 94,609 |  |  |  | 12,123,116 |  |  |  | 19,966,706 |  |  |  | (138,901 | ) |  |  | 19,827,805 |
Income taxes |  |  | 1,964,367 |  |  |  | 17,483 |  |  |  | 3,053,583 |  |  |  | 5,035,433 |  |  |  | - |  |  |  | 5,035,433 |
Income (loss) from operations after taxes |  |  | 5,784,614 |  |  |  | 77,126 |  |  |  | 9,069,533 |  |  |  | 14,931,273 |  |  |  | (138,901 | ) |  |  | 14,792,372 |
Total assets |  |  | 190,832,648 |  |  |  | 54,799,590 |  |  |  | 75,322,416 |  |  |  | 320,954,654 |  |  |  | 43,825 |  |  |  | 320,998,479 |
Depreciation and amortization |  |  | 13,194,940 |  |  |  | 4,738,524 |  |  |  | 2,668,597 |  |  |  | 20,602,061 |  |  |  | - |  |  |  | 20,602,061 |
Capital expenditures |  |  | 5,342,659 |  |  |  | 1,116,591 |  |  |  | - |  |  |  | 6,459,250 |  |  |  | - |  |  |  | 6,459,250 |
* 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 September 30, |  |  | Nine-Month Period Ended September 30, |
Reconciliations |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Total segment operating income |  | $ | 13,052,144 |  |  | $ | 6,861,594 |  |  | $ | 35,690,933 |  |  | $ | 19,966,706 |
Corporate costs |  |  | (210,707 | ) |  |  | (165,386 | ) |  |  | (1,153,164 | ) |  |  | (375,929 | )
Unrealized translation difference |  |  | 1,061,721 |  |  |  | (1,619 | ) |  |  | 1,037,429 |  |  |  | 237,028 |
Income from operations |  |  | 13,903,158 |  |  |  | 6,694,589 |  |  |  | 35,575,198 |  |  |  | 19,827,805 |
Other income, net of expense |  |  | 66,636 |  |  |  | 76,675 |  |  |  | 199,913 |  |  |  | 197,181 |
Income before taxes |  | $ | 13,969,794 |  |  | $ | 6,771,264 |  |  | $ | 35,775,111 |  |  | $ | 20,024,986 |
The following table shows the major customer(s) (10% or more) for the three-month period ended September 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 |  | $ | 2,059 |  |  | $ | 852 |  |  | $ | 2,085 |  |  | $ | 4,996 |  |  |  | 11.7% |
TOTAL |  |  |  | $ | 2,059 |  |  | $ | 852 |  |  | $ | 2,085 |  |  | $ | 4,996 |  |  |  | 11.7% |
The following table shows the major customer(s) (10% or more) for the nine-month period ended September 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 |  | $ | 6,130 |  |  | $ | 2,047 |  |  | $ | 5,769 |  |  | $ | 13,946 |  |  |  | 11.0% |
TOTAL |  |  |  | $ | 6,130 |  |  | $ | 2,047 |  |  | $ | 5,769 |  |  | $ | 13,946 |  |  |  | 11.0% |
The following table shows the major customer(s) (10% or more) for the three-month period ended September 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 |  | $ | 2,212 |  |  | $ | 673 |  |  | $ | 1,916 |  |  | $ | 4,801 |  |  |  | 15.4% |
TOTAL |  |  |  | $ | 2,212 |  |  | $ | 673 |  |  | $ | 1,916 |  |  | $ | 4,801 |  |  |  | 15.4% |
The following table shows the major customer(s) (10% or more) for the nine-month period ended September 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 |  | $ | 6,300 |  |  | $ | 1,936 |  |  | $ | 5,237 |  |  | $ | 13,473 |  |  |  | 15.2% |
TOTAL |  |  |  | $ | 6,300 |  |  | $ | 1,936 |  |  | $ | 5,237 |  |  | $ | 13,473 |  |  |  | 15.2% |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration