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15. BUSINESS SEGMENTS
 12 Months Ended
Dec. 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. 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, 2015

   Bromine *    

Crude

 Salt *

    

Chemical

 Products

    

Segment

 Total

     Corporate     Total  

Net revenue

(external customers)

   $ 52,385,491     $ 10,494,939     $ 99,436,690     $ 162,317,120     $ -     $ 162,317,120  
Net revenue (intersegment)     8,039,156       -       -       8,039,156       -       8,039,156  
Income from operations before taxes     10,854,711       1,183,755       32,997,870       45,036,336       128,374       45,164,710  
Income taxes     2,508,902       500,451       8,362,555       11,371,908       -       11,371,908  
Income from operations after taxes     8,345,809       683,304       24,635,315       33,664,428       128,374       33,792,802  
Total assets     136,701,878       40,306,628       179,733,958       356,742,464       762       356,743,226  
Depreciation and amortization     17,498,441       6,136,889       5,460,318       29,095,648       -       29,095,648  
Capital expenditures         20,665,890       2,120,622       72,113       22,858,625       -       22,858,625  
Goodwill     -       -       29,559,174       29,559,174       -       29,559,174  

 

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  
                                                   

 

* 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   2015     2014    
               
Total segment operating income   $ 45,036,336     $ 24,652,505    
Corporate costs     (1,447,023 )     (926,696 )  
Unrealized translation difference     1,575,397       92,412    
Income from operations     45,164,710       23,818,221    
Other income     275,235       279,589    
Income before taxes   $ 45,439,945     $ 24,097,810    
                     

 

The following table shows the major customer(s) (10% or more) for the year ended December 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

 

$ 7,989

  

 

$ 2,703

  

 

$ 7,431

   $  18,123   11.2%
TOTAL     $  7,989   $  2,703   $  7,431   $  18,123   11.2%

 

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%