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SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
SEGMENT INFORMATION
NOTE - 13
SEGMENT INFORMATION
 
Segment reporting
 
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.