SEGMENT INFORMATION |
NOTE - 13 | SEGMENT INFORMATION | The Company’s business units have been aggregated into two reportable segments, as defined by ASC Topic 280: | ⋅ | Heavy manufacturing business – production of valves components and the provision of valve improvement and engineering services; | | ⋅ | Energy-saving related business – production of energy-saving equipment, provision of energy-saving related re-engineering and technical services and long-term construction project. | The Company operates these business segments in the PRC and all of the identifiable assets of the Company are located in the PRC during the periods presented. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 3). The Company had no inter-segment sales for the three and six months ended June 30, 2013 and 2012. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. Summarized financial information concerning the Company’s reportable segments is shown in the following table for the three and six months ended June 30, 2013 and 2012: | | Three months ended June 30, 2013 | | | | Heavy manufacturing business | | Energy-saving related business | | Total | | Operating revenues, net: | | | | | | | | | | | - Products | | $ | 1,420,387 | | $ | - | | $ | 1,420,387 | | - Services | | | 55,029 | | | - | | | 55,029 | | Total operating revenues | | | 1,475,416 | | | - | | | 1,475,416 | | Cost of revenues | | | 1,044,491 | | | - | | | 1,044,491 | | | | | | | | | | | | | Gross profit | | | 430,925 | | | - | | | 430,925 | | Depreciation and amortization | | | 211,743 | | | - | | | 211,743 | | Total assets | | | 44,936,853 | | | - | | | 44,936,853 | | Expenditure for long-lived assets | | $ | 723,100 | | $ | - | | $ | 723,100 | | | | Six months ended June 30, 2013 | | | | Heavy manufacturing business | | Energy-saving related business | | Total | | Operating revenues, net: | | | | | | | | | | | - Products | | $ | 2,302,350 | | $ | - | | $ | 2,302,350 | | - Services | | | 471,679 | | | - | | | 471,679 | | Total operating revenues | | | 2,774,029 | | | - | | | 2,774,029 | | Cost of revenues | | | 1,932,129 | | | - | | | 1,932,129 | | | | | | | | | | | | | Gross profit | | | 841,900 | | | - | | | 841,900 | | Depreciation and amortization | | | 413,720 | | | - | | | 413,720 | | Total assets | | | 44,936,853 | | | - | | | 44,936,853 | | Expenditure for long-lived assets | | $ | 942,060 | | $ | - | | $ | 942,060 | | | | Three months ended June 30, 2012 | | | | Heavy manufacturing business | | Energy-saving related business | | Total | | Operating revenues, net: | | | | | | | | | | | - Products | | $ | 2,594,974 | | $ | - | | $ | 2,594,974 | | - Services | | | 707,650 | | | - | | | 707,650 | | Total operating revenues | | | 3,302,624 | | | - | | | 3,302,624 | | Cost of revenues | | | 2,792,866 | | | - | | | 2,792,866 | | | | | | | | | | | | | Gross profit | | | 509,758 | | | - | | | 509,758 | | Depreciation and amortization | | | 212,238 | | | - | | | 212,238 | | Total assets | | | 43,899,083 | | | - | | | 43,899,083 | | Expenditure for long-lived assets | | $ | 467,837 | | $ | - | | $ | 467,837 | | | | Six months ended June 30, 2012 | | | | Heavy manufacturing business | | Energy-saving related business | | Total | | Operating revenues, net: | | | | | | | | | | | - Products | | $ | 3,234,736 | | $ | - | | $ | 3,234,736 | | - Services | | | 1,266,259 | | | - | | | 1,266,259 | | Total operating revenues | | | 4,500,995 | | | - | | | 4,500,995 | | Cost of revenues | | | 3,570,706 | | | - | | | 3,570,706 | | | | | | | | | | | | | Gross profit | | $ | 930,289 | | $ | - | | $ | 930,289 | | Depreciation and amortization | | | 382,036 | | | - | | | 382,036 | | Total assets | | | 43,899,083 | | | - | | | 43,899,083 | | Expenditure for long-lived assets | | $ | 473,910 | | $ | - | | $ | 473,910 | | All long-lived assets are located in the PRC. |