XML 30 R19.htm IDEA: XBRL DOCUMENT v3.7.0.1

13. BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

13. 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. 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 June 30, 2017		Bromine*				Crude  Salt*				Chemical  Products				Natural Gas				Segment  Total				Corporate				Total
Net revenue (external customers)		$	18,423,133			$	2,521,883			$	26,586,973			$	—			$	47,531,989			$	—			$	47,531,989
Net revenue (intersegment)			2,910,743				—				—				—				2,910,743				—				2,910,743
Income(loss) from operations before taxes			9,740,981				1,051,202				8,318,480				(33,529	)			19,077,134				(594,662	)			18,482,472
Income taxes			2,464,085				245,164				2,112,201				—				4,821,450				—				4,821,450
Income (loss) from operations after taxes			7,276,896				806,038				6,206,279				(33,529	)			14,255,684				(594,662	)			13,661,022
Total assets			162,696,276				32,749,355				207,885,555				1,819,284				405,150,470				114,373				405,264,843
Depreciation and amortization			3,794,600				624,226				951,364				—				5,370,190				—				5,370,190
Goodwill			—				—				28,332,661				—				28,332,661				—				28,332,661

Three-Month Period Ended June 30, 2016		Bromine*				Crude  Salt*				Chemical  Products				Natural Gas				Segment  Total				Corporate				Total
Net revenue (external customers)		$	18,480,605			$	2,305,688			$	26,814,474			$	—			$	47,600,767			$	—			$	47,600,767
Net revenue (intersegment)			2,670,931				—				—				—				2,670,931				—				2,670,931
Income(loss) from operations before taxes			8,199,652				(10,099	)			8,531,677				(25	)			16,721,205				609,917				17,331,122
Income taxes			1,810,252				235,779				2,164,391				—				4,210,422				—				4,210,422
Income (loss) from operations after taxes			6,389,400				(245,878	)			6,367,286				(25	)			12,510,783				609,917				13,120,700
Total assets			149,221,327				30,673,443				193,703,787				1,058,651				374,657,208				118,573				374,775,781
Depreciation and amortization			4,144,546				1,339,696				1,160,329				—				6,644,571				—				6,644,571
Capital expenditure			—				—				—				813,589				813,589				—				813,589
Goodwill			—				—				28,944,958				—				28,944,958				—				28,944,958

Six-Month Period Ended June 30, 2017		Bromine*				Crude  Salt*				Chemical  Products				Natural Gas			Segment  Total				Corporate				Total
Net revenue (external customers)		$	32,345,527			$	4,335,661			$	43,639,294		$	-			$	80,320,482			$	-			$	80,320,482
Net revenue (intersegment)			5,089,236				-				-			-				5,089,236				-				5,089,236
Income(loss) from operations before taxes			15,012,915				1,937,089				13,264,657			(57,287	)			30,157,374				(861,905	)			29,295,469
Income taxes			3,794,188				468,746				3,380,342			-				7,643,276				-				7,643,276
Income (loss) from operations after taxes			11,218,727				1,468,343				9,884,315			(57,287	)			22,514,098				(861,905	)			21,652,193
Total assets			162,696,276				32,749,355				207,885,555			1,819,284				405,150,470				114,373				405,264,843
Depreciation and amortization			7,793,181				1,078,673				1,937,435			-				10,809,289				-				10,809,289
Goodwill			-				-				28,332,661			-				28,332,661				-				28,332,661

Six-Month Period Ended June 30, 2016		Bromine*				Crude  Salt*				Chemical  Products				Natural Gas			Segment  Total				Corporate				Total
Net revenue (external customers)		$	31,650,133			$	4,072,296			$	46,373,788		$	-			$	82,096,217			$	-			$	82,096,217
Net revenue (intersegment)			4,493,133				-				-			-				4,493,133				-				4,493,133
Income(loss) from operations before taxes			11,205,170				217,514				14,255,408			(25	)			25,678,067				319,373				25,997,440
Income taxes			2,553,622				299,283				3,625,188			-				6,478,093				-				6,478,093
Income (loss) from operations after taxes			8,651,548				(81,769	)			10,630,220			(25	)			19,199,974				319,373				19,519,347
Total assets			149,221,327				30,673,443				193,703,787			1,058,651				374,657,208				118,573				374,775,781
Depreciation and amortization			8,512,338				2,532,362				2,469,592			-				13,514,292				-				13,514,292
Capital expenditure			52,777				4,509				-			813,589				870,875				-				870,875
Goodwill			-				-				28,944,958			-				28,944,958				-				28,944,958

* 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 the respective segment.

		Three-Month Period Ended June 30,								Six-Month Period Ended June 30,
Reconciliations		2017				2016				2017				2016
Total segment operating income		$	19,077,134			$	16,721,205			$	30,157,374			$	25,678,067
Corporate costs			(128,007	)			(69,279	)			(257,995	)			(229,361	)
Unrealized gain/(loss) on translation of intercompany balance			(466,655	)			679,196				(603,910	)			548,734
Income from operations			18,482,472				17,331,122				29,295,469				25,997,440
Other income, net of expense			90,656				76,319				174,605				144,636
Income before taxes		$	18,573,128			$	17,407,441			$	29,470,074			$	26,142,076

The following table shows the major customer(s) (10% or more) for the three-month period ended June 30, 2017.

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	$ 3,111		$ 753		$ 1,684		$  5,548		11.7%

The following table shows the major customer(s) (10% or more) for the six-month period ended June 30, 2017.

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	$ 5,705		$ 1,251		$ 2,768		$  9,724		12.1%

The following table shows the major customer(s) (10% or more) for the three-month period ended June 30, 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	$ 3,269		$ 686		$ 1,696		$  5,651		11.9%

The following table shows the major customer(s) (10% or more) for the six-month period ended June 30, 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	$ 5,692		$ 1,172		$ 2,997		$  9,861		12.0%

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
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Name:	us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration