| Segment Reporting Disclosure [Text Block] |
16. SEGMENT INFORMATION The Company follows the provisions of ASC 280, “Segment Reporting,” which establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company’s CODM has been identified as the Chief Executive Officer. The Company has two operating segments, which are batteries and electric vehicles segments. The batteries segment develops, manufactures, and markets rechargeable Polymer Lithium-Ion (PLI) products. The batteries segment includes the operation of Heilongjiang ZQPT and Shenzhen ZQ. The electric vehicles segment develops and manufactures various types of electric vehicles through the operation of Wuxi ZQ. Wuxi ZQ owns three types of products listed in the E-Bike directory, with more than 20 different specifications, including electric bicycles, electric scooters, and various electric sports utility vehicles. Wuxi ZQ products are exported to the countries and regions in Europe, the United States and Asia. The measurement of segment income is determined as earnings before income taxes. The measurement of segment assets is based on the total assets of the segment, including intercompany advances among the PRC entities. Segment income and segment assets are reported to the Company’s (“CODM”) using the same accounting policies as those used in the preparation of these consolidated financial statements. Historically, there have been sale transactions between the two operating segments in addition to intersegment advances.
For the Three Months Ended June 30, 2011 | | Batteries | | | Electric Vehicles | | | Non-operating entities | | | Inter-segment Elimination | | | Consolidated Total | | Net Sales | | $ | 21,427,621 | | | $ | 13,199,869 | | | $ | - | | | $ | (3,276,838 | ) | | $ | 31,350,652 | | Interest Income (expense) | | | 47,408 | | | | 22,507 | | | | 42,258 | | | | - | | | | 112,173 | | Depreciation and Amortization | | | 610,487 | | | | 590,795 | | | | 19,726 | | | | - | | | | 1,221,007 | | | | | | | | | | | | | | | | | | | | | | | | Segment assets | | | 142,672,996 | | | | 73,570,263 | | | | 253,604,940 | | | | (220,188,730 | ) | | | 249,659,469 | | Segment net income (loss) before tax | | | 7,783,424 | | | | 4,041,850 | | | | 1,189,180 | | | | 264,915 | | | | 13,279,368 | |
For the Three Months Ended June 30, 2010 | | Batteries | | | Electric Vehicles | | | Non-operating entities | | | Inter-segment Elimination | | | Consolidated Total | | Net Sales | | $ | 14,029,427 | | | $ | 12,634,303 | | | $ | - | | | | (3,828,372 | ) | | | 22,835,358 | | Interest Income (expense) | | | 36,894 | | | | (133) | | | | 43,244 | | | | | - | | | 80,005 | | Depreciation and Amortization | | | 425,397 | | | | 629,789 | | | | 12,706 | | | | | - | | | 1,067,892 | | Segment assets | | | 113,074,511 | | | | 59,220,347 | | | | 147,591,880 | | | | (147,612,441 | ) | | | 172,274,297 | | Segment net income (loss) before tax | | | 6,465,055 | | | | 4,466,067 | | | | 3,312,320 | | | | (922,329) | | | | 13,321,113 | | For the Six Months Ended June 30, 2011 | | Batteries | | | Electric Vehicles | | | Non-operating entities | | | Inter-segment Elimination | | | Consolidated Total | | Net Sales | | $ | 40,831,834 | | | $ | 25,943,022 | | | $ | - | | | $ | (6,782,469 | ) | | $ | 59,992,387 | | Interest Income (expense) | | | 88,663 | | | | 44,061 | | | | 86,668 | | | | - | | | | 219,392 | | Depreciation and Amortization | | | 1,213,013 | | | | 1,134,811 | | | | 39,113 | | | | - | | | | 2,386,938 | | Segment assets | | | 142,672,996 | | | | 73,570,263 | | | | 253,604,940 | | | | (220,188,730 | ) | | | 249,659,469 | | Segment net income (loss) before tax | | | 15,003,286 | | | | 7,889,784 | | | | 9,287,138 | | | | 12,916 | | | | 32,193,124 | |
For the Six Months Ended June 30, 2010 | | Batteries | | | Electric Vehicles | | | Non-operating entities | | | Inter-segment Elimination | | | Consolidated Total | | Net Sales | | $ | 27,403,861 | | | $ | 21,703,953 | | | $ | - | | | $ | (6,723,439 | ) | | $ | 42,384,375 | | Interest Income (expense) | | | 91,931 | | | | (39,793) | | | | 95,405 | | | | - | | | | 147,543 | | Depreciation and Amortization | | | 850,945 | | | | 1,260,943 | | | | 98,365 | | | | | - | | | 2,210,253 | | Segment assets | | | 113,074,511 | | | | 59,220,347 | | | | 147,591,880 | | | | (147,612,441 | ) | | | 172,274,297 | | Segment net income (loss) before tax | | | 12,442,271 | | | | 6,550,035 | | | | 3,454,638 | | | | (854,106) | | | | 21,592,838 | |
Reconciliation of segment incomes to consolidated incomes | | For the Three Months Ended June 30, 2011 | | | For the Six Months Ended June 30, 2011 | | | | | (unaudited) | | | (unaudited) | | | | | | | | | | Total segment income (Operating entities) | | $ | 11,825,273 | | | $ | 22,893,070 | | Total segment income (Non-operating entities) (1) | | | 1,189,180 | | | | 9,287,138 | | Elimination of intersegment profits | | | 264,915 | | | | 12,916 | | Consolidated income before income taxes | | $ | 13,279,368 | | | $ | 32,193,124 | |
Reconciliation of segment assets to consolidated assets | | As of June 30, 2011 | | | | | (unaudited) | | | | | | | Total segment net assets (Operating entities) | | $ | 216,243,259 | | Total segment net assets (Non-operating entities) (2) | | | 253,604,940 | | Elimination of intersegment receivables | | | (220,188,730 | ) | Consolidated assets | | | 249,659,469 | |
Reconciliation of segment incomes to consolidated incomes | | For the Three Months Ended June 30, 2010 | | | For the Six Months Ended June 30, 2010 | | | | | (unaudited) | | | (unaudited) | | | | | | | | | | Total segment income (Operating entities) | | $ | 10,931,122 | | | $ | 18,992,306 | | Total segment income (Non-operating entities) (1) | | | 3,312,320 | | | | 3,454,638 | | Elimination of intersegment profits | | | (922,329 | ) | | | (854,106 | ) | Consolidated income before income taxes | | $ | 13,321,113 | | | $ | 21,592,838 | | | | | | | | | | | |
Reconciliation of segment assets to consolidated assets | | As of June 30, 2010 | | | | | (unaudited) | | | | | | | Total segment net assets (Operating entities) | | $ | 172,294,858 | | Total segment net assets (Non-operating entities) (2) | | | 147,591,880 | | Elimination of intersegment receivables | | | (147,612,441 | ) | Consolidated assets | | | 172,274,297 | |
(1) | “Non-operating entities” identifies our U.S. parent corporation, Advanced Battery Technologies, Inc., and its subsidiary holding company, Cashtech Investment Limited, a British Virgin Islands corporation. “Segment income (Non-operating entities)” refers to the administrative expenses of those two entities, including the expenses attributable to our New York City office, other income/expenses arising from financing activities conducted by the parent corporation, such as “change in fair value of warrants, and other income/expenses arising from investment activity by the parent corporation. |
(2) | “Segment net assets (Non-operating entities”) refers to the net assets of the non-operating entities identified in the preceding note, and includes the book value of the two subsidiaries of Cashtech Investment Limited, which are our two operating companies, as well as cash accounts maintained by our parent company. |
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