SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

SEGMENT INFORMATION

18.     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 – 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 years presented.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2). The Company had no inter-segment sales for the years ended December 31, 2014 and 2013. 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 years ended December 31, 2014 and 2013:

	Year ended December 31, 2014
	Heavy
	manufacturing business		Energy-saving related business		Total
Operating revenues, net:
- Products	$	7,395,933	$	2,346,594	$	9,742,527
- Services		238,390		-		238,390
Total operating revenues		7,634,323		2,346,594		9,980,917
Cost of revenues		(6,283,873)		(2,212,750)		(8,496,623)
Gross profit		1,350,450		133,844		1,484,294
Depreciation and amortization		844,657		-		844,657
Total assets		48,304,931		-		48,304,931
Expenditure for long-lived assets	$	341,634	$	-	$	341,634

	Year ended December 31, 2013
	Heavy manufacturing business		Energy-saving related business		Total
Operating revenues, net:
- Products	$	4,693,248		-		4,693,248
- Services		981,685		-		981,685
Total operating revenues		5,674,933		-		5,674,933
Cost of revenues		(4,132,139)		-		(4,132,139)
Gross profit		1,542,794		-		1,542,794
Depreciation and amortization		831,084		-		831,084
Total assets		42,676,193		-		42,676,193
Expenditure for long-lived assets	$	1,080,167		-		1,080,167

All long-lived assets are located in the PRC.