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15. BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
15. BUSINESS SEGMENTS

The Company has four reportable segments:  bromine, crude salt, chemical products and natural gas. 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, 2016

   Bromine *    

Crude

 Salt *

    

Chemical

 Products

       Natural Gas    

Segment

 Total

     Corporate     Total  

Net revenue

(external customers)

   $ 56,811,730     $ 8,985,852     $ 83,477,420     $ -     $ 149,275,002     $ -     $ 149,275,002  
Net revenue (intersegment)     8,484,617       -       -       -       8,484,617       -       8,484,617  
Income from operations before taxes     21,224,862       9,076       25,473,792       (4,906 )     46,702,824       1,020,518       47,723,342  
Income taxes     5,306,216       9,022       6,494,969       -       11,810,207       -       11,810,207  
Income from operations after taxes     15,918,646       54       18,978,823       (4,906 )     34,892,617       1,020,518       35,913,135  
Total assets     143,145,960       33,980,033       186,676,983       1,799,094       365,602,070       89,283       365,691,353  
Depreciation and amortization     15,056,980       5,221,667       4,601,599       -       24,880,246       -       24,880,246  
Capital expenditures         12,912,583       2,335,963       -       1,747,316       16,995,862       -       16,995,862  
Goodwill     -       -       27,668,539       -       27,668,539       -       27,668,539  

 

 

Year Ended

December 31, 2015

   Bromine *    

Crude

 Salt *

    

Chemical

 Products

       Natural Gas    

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  

 

* 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   2016     2015    
               
Total segment operating income   $ 46,702,824     $ 45,036,336    
Corporate costs     (682,210 )     (1,447,023 )  
Unrealized translation difference     1,702,728       1,575,397    
Income from operations     47,723,342       45,164,710    
Other income     312,696       275,235    
Income before taxes   $ 48,036,038     $ 45,439,945    
                     

  

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

 

$ 9,823

  

 

$ 2,678

  

 

$ 5,347

   $  17,848   12.0%

 

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%