Segment Information

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 12 - SEGMENT INFORMATION

For the three and six months ended June 30, 2012 and 2011, the Company operated in two reportable business segments - (1) the manufacture of forged rolled rings and related components for the wind power and other industries segment, which also includes the manufacture of the Company’s solar industry products, and (2) the manufacture of dyeing and finishing equipment segment. The Company’s reportable segments are strategic business units that offer different products. They are managed separately based on the fundamental differences in their operations.  All of the Company’s operations are conducted in the PRC.

Information with respect to these reportable business segments for the three and six months ended June 30, 2012 and 2011 is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenues:
Forged rolled rings and related components	$	8,208,210		$	8,706,888		$	13,793,665		$	22,124,245
Dyeing and finishing equipment		4,624,653			3,901,293			8,448,427			8,050,316
		12,832,863			12,608,181			22,242,092			30,174,561
Depreciation:
Forged rolled rings and related components		1,215,536			1,092,426			2,432,705			2,106,172
Dyeing and finishing equipment		329,630			234,331			659,806			397,587
		1,545,166			1,326,757			3,092,511			2,503,759
Interest expense:
Forged rolled rings and related components		52,563			32,826			130,196			62,528
Dyeing and finishing equipment		17,800			-			30,200			-
		70,363			32,826			160,396			62,528
Net income (loss):
Forged rolled rings and related components		750,036			1,048,738			1,076,705			3,490,411
Dyeing and finishing equipment		506,797			406,206			916,140			829,648
Other (a)		(185,463	)		(284,985	)		(618,680	)		(484,940	)
	$	1,071,370		$	1,169,959		$	1,374,165		$	3,835,119

Identifiable long-lived tangible assets at June 30, 2012 and December 31, 2011 by segment:
	June 30, 2012		December 31, 2011
Forged rolled rings and related components	$	51,621,902	$	51,930,395
Dyeing and finishing equipment		13,046,847		12,111,684
	$	64,668,749	$	64,042,079

Identifiable long-lived tangible assets at June 30, 2012 and December 31, 2011 by geographical location:
	June 30, 2012		December 31, 2011
China	$	64,668,749	$	64,042,079
United States		-		-
	$	64,668,749	$	64,042,079

 (a)The Company does not allocate any general and administrative expenses of its U.S. activities to its reportable segments, because these activities are managed at a corporate level.