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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%