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15. BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2016
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, 2016   Bromine *    

Crude

Salt *

    

Chemical

Products

    

Segment

Total

     Corporate     Total  

Net revenue

(external customers)

   $ 13,169,528     $ 1,766,608     $ 19,559,314     $ 34,495,450     $ -     $ 34,495,450  

Net revenue

(intersegment)

     1,822,202       -       -       1,822,202       -       1,822,202  
Income (loss) from operations before taxes     3,005,518       227,613       5,723,731       8,956,862       (290,544 )     8,666,318  
Income taxes     743,370       63,504       1,460,797       2,267,671       -       2,267,671  
Income (loss) from operations after taxes     2,262,148       164,109       4,262,934       6,689,191       (290,544 )     6,398,647  
Total assets     150,811,432       30,335,316       185,961,792       367,108,540       36,152       367,144,692  
Depreciation and amortization     4,367,792       1,192,666       1,309,263       6,869,721       -       6,869,721  
Goodwill     -       -       29,706,970       29,706,970       -       29,706,970  

 

 

 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  

 

 

* 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               2016     2015  
Total segment operating income                   $ 8,956,862     $ 7,371,234    
Corporate costs                     (160,082 )     (361,942 )   
Unrealized (loss)/gain on translation of intercompany balance                     (130,462 )     101,359    
Income from operations                     8,666,318       7,110,651    
Other income                     68,317       76,108    
Income before taxes                   $ 8,734,635     $ 7,186,759    

 

The following table shows the major customer(s) (10% or more) for the three-month period ended March 31, 2016.

 

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

 

$ 2,422

  

 

$ 487

  

 

$ 1,301

   $  4,210   12.2%

 

 

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%